XAU/USD | GOLDSPOT | New perspective | follow-up details
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Gold closed last week deeply entrenched in negative territory, facing strong headwinds from a resilient US Dollar (USD) which hindered XAU/USD from capitalizing on declining bond yields. The Federal Reserve's March meeting highlighted the urgency for policymakers to consider interest rate reductions, despite recent inflation reports suggesting a potential reacceleration. This initially propelled XAU/USD to reach new all-time highs, albeit briefly.
Presently, the US economy exhibits signs of resilience, with the Federal Open Market Committee (FOMC) projecting a growth rate of 2.1% for 2024, up from the previous estimate of 1.4%, while maintaining the Unemployment Rate at 4%. Attention now turns to inflation metrics, particularly the Personal Consumption Expenditures (PCE) index, favored by the Fed, which is anticipated to reach 2.4%, with core PCE projected at 2.6%, an increase from 2.4%.
As we prepare for the upcoming week, this video serves as a guide to navigating the current market dynamics, offering insights into potential strategies amid these shifting economic conditions.
XAUUSD Technical Overview:
In this video, we conducted a comprehensive analysis of the XAUUSD chart, utilizing both technical and fundamental perspectives. Our examination included an in-depth study of key levels, historical price movements, market behaviours, and the interplay between buyers and sellers, aiming to unveil potential trading opportunities.
Our focal point for the week is the $2,145 zone, endowed with historical significance, rendering it a pivotal level. The sustainability of bullish momentum above this zone could pave the way for continued buying pressure, potentially propelling prices to new highs. Conversely, the appearance of a reversal pattern or a breach below the $2,145 level, coupled with persistent selling pressure, might signal a resurgence of bearish sentiment.
#GoldMarket #SafeHavenAssets 📺🔔💼
Disclaimer Notice:
Please be aware that margin trading in the foreign exchange market, including commodity trading, CFDs, stocks, and other instruments, carries a high level of risk and may not be suitable for all investors. The content of this speculative material, including all data, is provided by me for educational purposes only and to assist in making independent investment decisions. All information presented here is for reference purposes only, and I do not assume any responsibility for its accuracy.
It is important that you carefully evaluate your investment experience, financial situation, investment objectives, and risk tolerance level. Before making any investment, it is advisable to consult with your independent financial advisor to assess the suitability of your circumstances.
Please note that I cannot guarantee the accuracy of the information provided, and I am not liable for any loss or damage that may directly or indirectly result from the content or the receipt of any instructions or notifications associated with it.
Remember that past performance is not necessarily indicative of future results. Keep this in mind while considering any investment opportunities.
Presently, the US economy exhibits signs of resilience, with the Federal Open Market Committee (FOMC) projecting a growth rate of 2.1% for 2024, up from the previous estimate of 1.4%, while maintaining the Unemployment Rate at 4%. Attention now turns to inflation metrics, particularly the Personal Consumption Expenditures (PCE) index, favored by the Fed, which is anticipated to reach 2.4%, with core PCE projected at 2.6%, an increase from 2.4%.
As we prepare for the upcoming week, this video serves as a guide to navigating the current market dynamics, offering insights into potential strategies amid these shifting economic conditions.
XAUUSD Technical Overview:
In this video, we conducted a comprehensive analysis of the XAUUSD chart, utilizing both technical and fundamental perspectives. Our examination included an in-depth study of key levels, historical price movements, market behaviours, and the interplay between buyers and sellers, aiming to unveil potential trading opportunities.
Our focal point for the week is the $2,145 zone, endowed with historical significance, rendering it a pivotal level. The sustainability of bullish momentum above this zone could pave the way for continued buying pressure, potentially propelling prices to new highs. Conversely, the appearance of a reversal pattern or a breach below the $2,145 level, coupled with persistent selling pressure, might signal a resurgence of bearish sentiment.
#GoldMarket #SafeHavenAssets 📺🔔💼
Disclaimer Notice:
Please be aware that margin trading in the foreign exchange market, including commodity trading, CFDs, stocks, and other instruments, carries a high level of risk and may not be suitable for all investors. The content of this speculative material, including all data, is provided by me for educational purposes only and to assist in making independent investment decisions. All information presented here is for reference purposes only, and I do not assume any responsibility for its accuracy.
It is important that you carefully evaluate your investment experience, financial situation, investment objectives, and risk tolerance level. Before making any investment, it is advisable to consult with your independent financial advisor to assess the suitability of your circumstances.
Please note that I cannot guarantee the accuracy of the information provided, and I am not liable for any loss or damage that may directly or indirectly result from the content or the receipt of any instructions or notifications associated with it.
Remember that past performance is not necessarily indicative of future results. Keep this in mind while considering any investment opportunities.
Note
#XAUUSDThe commencement of the new week witnessed a rebound in Gold prices, recouping some of the losses incurred during the previous week's trading session. This resurgence in Gold can be attributed to a weakening US Dollar (USD), influenced by the dovish sentiment surrounding the Federal Reserve's stance on the trajectory of interest rates. Market sentiment leans towards the anticipation of interest rate cuts by the Fed, potentially commencing as early as June. Recent statements from Fed policymakers indicate their continued commitment to reducing interest rates by three-quarters of a percentage point by the end of 2024, despite recent spikes in inflation.
Federal Reserve Chair highlighted the possibility of interest rate adjustments in response to unexpected increases in unemployment.
The upcoming release of US inflation data is poised to have a significant impact on prices of safe-haven assets. Market participants are eagerly awaiting the Gross Domestic Product (GDP) figures for the fourth quarter of 2023 and the report on the Personal Consumption Expenditures (PCE) price index from the United States. These indicators will offer insights into inflationary pressures, potentially influencing Gold prices accordingly. Considering these factors, the possibility of an extended sideways movement in the market cannot be overlooked before a clear direction in price action emerges.
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#XAUUSDSTRUCTURAL UPDATE
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Secure the buy position.
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Following yesterday's modest profit from exiting our buy position, we've initiated a reentry as the Gold price shows signs of consolidating its previous rebound. The US Dollar continues to face bearish pressure amid mixed market sentiment, with US Treasury bond yields struggling to sustain Monday's upward movement.The prevailing bias appears to favor bulls, especially with the Federal Reserve (Fed) signaling a less restrictive policy in the future, potentially serving as a tailwind for safe-haven assets like Gold. Moreover, geopolitical tensions suggest that the path of least resistance for Gold remains tilted to the upside.
However, it's essential to acknowledge the possibility of extended sideways trading activity, especially as market participants await key events on the US economic calendar. These include Durable Goods Orders, the Conference Board's Consumer Confidence Index, and the Richmond Manufacturing Index, which could provide further impetus later in the day.
Given these developments, it's crucial to note that the structures identified in yesterday's session remain relevant in guiding our decisions today.
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#XAUUSDTime to secure more profit as we look out for new trading opportunities.
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#XAUUSDSTRUCTURAL UPDATE
Four buy positions running with over 550 pips in profit; secure more profits while we look out for new trading opportunities.
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Secure sell positions nowTrade active
Yesterday's trading set-up yielded approximately 700 pips from both the buy and sell positions. As outlined in my recent update, a potential reversal setup is emerging as the ascending trendline and the level at 2,178.50 were tested, prompting the initiation of another buy position amid buying activity seen during the Asian session.While the US Dollar consolidates its previous rebound, US Treasury bond yields are struggling amidst a shift in market sentiment. Tuesday's slightly better-than-expected US Durable Goods Orders reinforce the perception of a robust US economy. Persistent inflationary pressures may prompt the Federal Reserve to maintain higher interest rates for an extended period, thereby supporting US Treasury bond yields and potentially strengthening the US Dollar.
Market participants are exercising caution and awaiting further clarity on the Fed's monetary policy trajectory before making significant directional bets. Attention is now focused on the release of the US Personal Consumption and Expenditure (PCE) Price Index on Friday, which is expected to heavily influence near-term USD price dynamics. Given these factors, we anticipate continued sideways trading activity leading up to these events.
It's important to note that a buy position is currently active, and the levels identified on our charts from yesterday remain relevant.
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#XAUUSDUPDATE
It is time to secure some profit from the buy position
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#XAUUSDSTRUCTURAL UPDATE
Secure more buy positions as we wait patiently to see how the market reacts to the $2,195 zone
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The path of least resistance for Gold is still looking to the upsideTrade active
The absence of significant economic events in the US led investors to buy Gold amid growing speculation of a potential rate cut by the Federal Reserve (Fed) in June. However, it's now crucial to safeguard all buy positions as Gold prices trend lower following hawkish remarks from Federal Reserve Governor Christopher Waller on Wednesday. Waller's comments dampened expectations of a rate cut, acting as a deterrent for safe-haven assets like Gold.Despite this, the US central bank recently signaled a less restrictive monetary policy and reiterated its plan to cut interest rates by 75 basis points in 2024. This stance restrains aggressive moves by US Dollar bulls and provides some support to Gold prices.
Moreover, geopolitical tensions arising from the Russia-Ukraine conflict and ongoing turmoil in the Middle East are likely to prevent significant declines in the price of Gold.
Given these factors, it's imperative to protect all buy positions as market participants await the release of US GDP data later today.
Good Morning
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#XAUUSDSTRUCTURAL UPDATE
Ensure all buy positions are secured as the ascending trendline remains our guiding light for today's trading activities.
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#XAUUSDAnother buy position triggered; secure more profit as we look out for new trading opportunities.
Note
#XAUUSDIn the past 24 hours, three new buy positions have been added, generating a total profit exceeding 700 pips as Gold reaches record highs. However, with major global markets, including the US, closed for Good Friday, Gold price volatility is expected to remain low.
The current upward momentum is driven by safe-haven investments amid economic uncertainties and the potential for US Federal Reserve (Fed) interest rate cuts. Expectations of reduced Fed rate cuts could strengthen the US Dollar (USD) and limit Gold's upward movement.
Traders, as per the CME FedWatch Tool, are estimating a 63% probability of a Fed interest rate cut in June. Remember that lower interest rates typically devalue the USD, making Gold more affordable for investors using other currencies.
Additionally, ongoing geopolitical tensions in the Middle East typically increase the appeal safe-haven assets like Gold.
Given these factors, it is advisable to secure all buy positions now, as trading is anticipated to be quiet today due to market closures for Good Friday.
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