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XAUUSD Kijun-Sen Supported LongDear Ziilllaatraders, Gold tends to exhibit a bullish trend when the Dollar weakens in response to lower inflation numbers. What we saw now of the dollar was a retest upward. As inflation declines, it diminishes the purchasing power of the Dollar, leading to a potential depreciation relative to other currencies. This depreciation prompts investors to seek alternative safe-haven assets like gold, driving up its demand and consequently causing its price to surge. In addition to the impact of a weaker Dollar on gold's bullish outlook, technical analysis using the Ichimoku strategy reveals further support for an upward move in the gold chart. The Kijun-sen, a key component of the Ichimoku Cloud, acts as a significant indicator in this context. The Kijun-sen represents the midpoint of the high and low prices over a specific period, often the past 26 periods, and its position on the chart provides crucial insights. When the gold chart shows support from the Kijun-sen, it implies that the price of gold is currently hovering around this crucial level. In the context of the Ichimoku strategy, this means that the market is in a state of equilibrium, where the forces of supply and demand are relatively balanced at this point. As the gold price hovers near the Kijun-sen level, it suggests a potential period of consolidation or sideways movement. However, this should not be mistaken for a bearish signal. In fact, in the Ichimoku strategy, the Kijun-sen is also considered a support level. As long as the price remains above the Kijun-sen, it signifies that the underlying bullish sentiment remains intact. When the market finds support at the Kijun-sen, it acts as a springboard for a potential upward move. Traders and investors observe this level to gauge potential buying opportunities. As the demand for gold increases due to the Dollar's depreciation caused by lower inflation numbers, the support from the Kijun-sen further strengthens the conviction that the gold price is likely to move higher. In summary, when the Dollar weakens due to lower inflation numbers, gold tends to become bullish as investors seek a safe-haven asset. Technical analysis using the Ichimoku strategy confirms this bullish sentiment, as the gold chart shows support from the Kijun-sen. This support level indicates a state of equilibrium and serves as a platform for a potential upward move in the gold price, reinforcing the positive outlook for the precious metal in the market. Greetings, Ziilllaatrades
OANDA:XAUUSDLong
by ZILATRADES
XAUUSD Long, Inflation Correlation With The DollarDear Ziilllaatraders, We could see inflation numbers coming out of the PCE price index. These numbers were lower than the previous numbers. When inflation numbers trend lower, it can lead to a bearish sentiment for the Dollar and a bullish outlook for gold. The relationship between lower inflation and the movement of these assets can be explained by the following factors: Monetary Policy and Interest Rates: Lower inflation rates may prompt central banks, like the Federal Reserve in the United States, to adopt a dovish monetary policy stance. In response to subdued inflation, central banks are more likely to keep interest rates low or even implement rate cuts to stimulate economic growth. A dovish monetary policy typically results in a weaker DXY as lower interest rates reduce the currency's yield attractiveness for investors. Currency Depreciation: Lower inflation can erode the purchasing power of a currency, leading to depreciation relative to other currencies. In the case of the dollar, if inflation remains subdued, the value of the dollar may decline, making it less valuable in the foreign exchange market. This depreciation can drive a bearish trend for the Dollar. Safe-Haven Demand for Gold: Gold is often considered a safe-haven asset, particularly during times of economic uncertainty and low inflation. When inflation is low, investors may become concerned about the potential erosion of the value of paper currencies and seek a hedge against currency devaluation. As a result, demand for gold as a store of value and an inflation hedge increases, leading to a bullish trend in the price of gold. Real Interest Rates: Lower inflation can also impact real interest rates, which are nominal interest rates adjusted for inflation. When inflation is low, real interest rates tend to be higher, making non-yielding assets like gold more attractive to investors seeking positive real returns. This shift in interest can contribute to a bullish gold market. Conclusion: The correlation between lower inflation numbers and a bearish Dollar, as well as a bullish gold market, is driven by the impact on monetary policy, currency depreciation, and the increased demand for gold as a safe-haven asset and inflation hedge. Traders and investors should closely monitor inflation data, central bank policies, and overall market sentiment to gauge the potential movements of the Dollar and gold. As always, it's important to use proper risk management as I always tell you people. Feel free to ask any questions. Greetings, Ziilllaatrades
OANDA:XAUUSDLong
by ZILATRADES
GBP/AUDFast intraday search through my watchlist. You can follow the price with candle confirmation or whatever strategy you have. None of these are 100 %, complete confident analyses.. this market is all about probability .. so try to work on your risk management and self-control.. all the traders in the world can tell for sure what's going to happen or where the price is going in the next 1 hour. Ps. Leave your comment and thoughts. I posted this position a couple of days ago .. still valid.
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by Cryptosours
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