XAUUSD | GOLDSPOT | New perspective | follow-up detailsGold's recent performance faced an unexpected twist, challenging the notion that a Fed rate pause could be its ticket to a breakout. Instead, the precious metal found itself in the shadow of its formidable rival, the US dollar.
The preceding week had seen gold bask in the glory of the US non-farm payrolls report for August. Despite an employment gain of 187,000 jobs, surpassing the forecasted 170,000, the unemployment rate inched up from July's 3.5% to 3.8%. This unexpected rise fueled speculation that the upcoming Fed meeting on Sept. 20 might result in unchanged interest rates, briefly propelling gold higher.
However, as the week unfolded, a new narrative emerged. Speculation resurfaced, suggesting that the Fed might consider not just a pause but potentially more rate hikes before year-end to achieve its 2% annual inflation target. Inflation, as measured by the Consumer Price Index (CPI), rekindled in July, surging to 3.2%. These mounting concerns prompted the Dollar Index to soar to six-month highs.
Now, the burning question is: What lies ahead for the Gold market in the coming week? Join us as we unravel the intricacies and potential scenarios in this ever-evolving landscape.
XAUUSD Technical Analysis:
In this video, we delve into XAUUSD from a price action-based technical analysis standpoint. By analyzing historical price moves, market behaviors, and buyer-seller dynamics, we extract insightful cues.
The $1,915 zone will take center stage for this week. Its historical significance makes it a crucial point. If the bullish momentum is sustained then the breakout of the uptrend continuation pattern - falling wedge identified on the daily timeframe could incite a strong uptrend continuation. However, if the price breaks below both the ascending trendline and the $1,915 zone then some selling opportunities could take center stage to trigger a USD-favored sell-off.
Stay tuned for more thrilling updates on the Gold market! Remember, trading involves risks, and I always recommend exercising caution and seeking advice from financial professionals. Hit the like button if you found this analysis helpful, and don't forget to subscribe for more insightful content! 📺🔔💼
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.
