GOLD trades around $3,300, market lacks major impactOANDA:XAUUSD sare trading lower around the $3,300/oz flatline as easing US-China trade tensions dampen the appeal of gold as a safe-haven asset, while investors await US economic data to gauge the Federal Reserve's policy direction.
OANDA:XAUUSD have been trading in a narrow range recently as the market awaits details of the first trade deal, which is expected to be announced this week or next.
OANDA:XAUUSD has reversed to a downside correction since last week as Trump made some very positive comments and the risk of stagflation was further ruled out, and gold prices continued to fall. Stagflation has pushed gold higher and as the market starts to price in this risk, a correction is natural, especially considering that “buying gold” has become the top trade and it is technically in overbought territory.
Looking at the larger picture, gold prices remain in an uptrend as real yields are likely to continue to fall amid the Fed’s easing. But in the short term, more positive news on tariffs could see gold prices continue to fall as the market adjusts to the new conditions.
OANDA:XAUUSD , traditionally seen as a hedge against political and financial uncertainty, hit a record high of $3,500.05 last week amid heightened uncertainty.
Investors will be watching economic data for the rest of the week, including Wednesday's personal consumption expenditure report and Friday's non-farm payrolls report.
Technical Outlook OANDA:XAUUSD
On the daily chart, gold continues to move sideways as the accumulation state takes place as the market has no fundamental impact of any sudden change. With the current position, gold is not qualified to increase or decrease significantly with the sideway area of attention in the range of 3,371 - 3,292 USD being the positions of the Fibonacci retracement of 0.236% and 0.382%.
However, overall, gold is still inclined to increase in the long term with the price channel as the main trend and support from EMA21 as the main support. As long as gold remains above/within the price channel, above EMA21, it still has the technical conditions for the main trend to be up, the declines should only be considered as short-term corrections and not an official trend.
During the day, the sideways accumulation state with the main uptrend will be noticed again by the following positions.
Support: 3,292 – 3,267 USD
Resistance: 3,371 USD
SELL XAUUSD PRICE 3382 - 3380⚡️
↠↠ Stop Loss 3386
→Take Profit 1 3374
↨
→Take Profit 2 3368
BUY XAUUSD PRICE 3283 - 3285⚡️
↠↠ Stop Loss 3279
→Take Profit 1 3291
↨
→Take Profit 2 3297
