Market Structure and Price Action on GOLD (11 June 2024)
11 June 2024
GOLD
Long Term Market Structure:
Price Action since January 2024 is in a Bullish or Up Trend witch opened @ 2062.970 on 02 January 2024 and went to a High of 2450.125 as recent as 20 May 2024. Just by looking at the increase in price from January GOLD is currently in a Bullish Trend.
Looking at the daily graph from January one can clearly see that there was a period from January 2024 till 1 March 2024when the price consolidated in a channel between 2064.418 (Top of Channel) and 1992.158 (Bottom of Channel)
The price broke above the channel and went to high level at 2399.564 on 19 April 2024.06.11
After this High it seems like the price is currently consolidating in a channel between 2428.233 (Top of channel) and 2286.423 (Bottom of channel)
Long Term price action suggest that there is a Long-Term Bullish Trend and before a clear and obvious change in Market Trend is not visible one can only see this market as a “Buyers” market.
Meduim Term Market Structure:
Like mentioned in the Long-Term market Structure Analysis made the Price Action is currently sideways in a channel.
A Break beneath the 2287.534 level may result in a pullback to the 2147.145 level if the Bears take control of the medium to long term market.
A Weak Dollar ($) may cause the price of GOLD to increase further and eventually reach a yearly high very soon.
My personal feeling is that there is currently to much uncertainty in the US Markets to strengthen the dollar in such a way that it will decrease the price of GOLD.
The 2024 US Election on 05 November 2024 will also be no confidence booster for the Dollar ($)
Witch will also boost the price of GOLD to increase.
Short Term Market Structure:
Price consolidation is taking place (Struggle between buyers and sellers for market dominance) since the sharp decline in price on Friday 07 June 2024 @ 14h00
Price is consolidating in the channel of 2315.627 (Top of channel) and 2291.608 (Bottom of channel)
Short Term Factors and News that may influence the Price Action of GOLD is:
- Wednesday 12 June 2024: News on Inflation Rate (YoY and MoM) and Core Inflation Rate (YoY and MoM) @ 14h30 pm in USA
- Wednesday 12 June 2024: FED Interest Rate Decision @ 20h00 pm Wednesday 12 June 2024: Wednesday 12 June 2024:
- Thursday 13 June 2024: PPI (MoM) in USA @14h30 pm
By looking at Market Structure through current and long-term Price Action on various time frames, I would be making the following predictions to future price action on GOLD:
- Wait for more short-term price structure to decide in which direction to take your trade. (Buy the Market or Sell the market)
- Keep an eye on the shorter time frames to check for push above the 2315.675 level which may confirm the current Long Term Bullish Market Structure and result in Profit Targets on the increase in price level.
- Although Momentum is currently to the “Downside” on shorter (1 Hr) time frames the Momentum is not very strong as this may result in a sudden increase in the Price of GOLD when Fundamental News out of the USA takes place.
- I would certainly look for short term pullbacks in price to buy the market and go with the direction of the Longer-Term Market (Up Trend) (Remember: The Trend is your Friend)
** Information supplied, recommendations made in this written piece about Analysing the mentioned Forex pair must not be taken as Financial Advice and X&Y Trading (Pty) Ltd and its managers or partners may not be held responsible or held accountable for any loss suffered by anyone deciding to open a buy or sell position regarding the above analysis.
GOLD
Long Term Market Structure:
Price Action since January 2024 is in a Bullish or Up Trend witch opened @ 2062.970 on 02 January 2024 and went to a High of 2450.125 as recent as 20 May 2024. Just by looking at the increase in price from January GOLD is currently in a Bullish Trend.
Looking at the daily graph from January one can clearly see that there was a period from January 2024 till 1 March 2024when the price consolidated in a channel between 2064.418 (Top of Channel) and 1992.158 (Bottom of Channel)
The price broke above the channel and went to high level at 2399.564 on 19 April 2024.06.11
After this High it seems like the price is currently consolidating in a channel between 2428.233 (Top of channel) and 2286.423 (Bottom of channel)
Long Term price action suggest that there is a Long-Term Bullish Trend and before a clear and obvious change in Market Trend is not visible one can only see this market as a “Buyers” market.
Meduim Term Market Structure:
Like mentioned in the Long-Term market Structure Analysis made the Price Action is currently sideways in a channel.
A Break beneath the 2287.534 level may result in a pullback to the 2147.145 level if the Bears take control of the medium to long term market.
A Weak Dollar ($) may cause the price of GOLD to increase further and eventually reach a yearly high very soon.
My personal feeling is that there is currently to much uncertainty in the US Markets to strengthen the dollar in such a way that it will decrease the price of GOLD.
The 2024 US Election on 05 November 2024 will also be no confidence booster for the Dollar ($)
Witch will also boost the price of GOLD to increase.
Short Term Market Structure:
Price consolidation is taking place (Struggle between buyers and sellers for market dominance) since the sharp decline in price on Friday 07 June 2024 @ 14h00
Price is consolidating in the channel of 2315.627 (Top of channel) and 2291.608 (Bottom of channel)
Short Term Factors and News that may influence the Price Action of GOLD is:
- Wednesday 12 June 2024: News on Inflation Rate (YoY and MoM) and Core Inflation Rate (YoY and MoM) @ 14h30 pm in USA
- Wednesday 12 June 2024: FED Interest Rate Decision @ 20h00 pm Wednesday 12 June 2024: Wednesday 12 June 2024:
- Thursday 13 June 2024: PPI (MoM) in USA @14h30 pm
By looking at Market Structure through current and long-term Price Action on various time frames, I would be making the following predictions to future price action on GOLD:
- Wait for more short-term price structure to decide in which direction to take your trade. (Buy the Market or Sell the market)
- Keep an eye on the shorter time frames to check for push above the 2315.675 level which may confirm the current Long Term Bullish Market Structure and result in Profit Targets on the increase in price level.
- Although Momentum is currently to the “Downside” on shorter (1 Hr) time frames the Momentum is not very strong as this may result in a sudden increase in the Price of GOLD when Fundamental News out of the USA takes place.
- I would certainly look for short term pullbacks in price to buy the market and go with the direction of the Longer-Term Market (Up Trend) (Remember: The Trend is your Friend)
** Information supplied, recommendations made in this written piece about Analysing the mentioned Forex pair must not be taken as Financial Advice and X&Y Trading (Pty) Ltd and its managers or partners may not be held responsible or held accountable for any loss suffered by anyone deciding to open a buy or sell position regarding the above analysis.
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