Trading strategy with negative bias
Hi everybody!
Today let's discuss XAUUSD.
Overall, XAUUSD experienced significant volatility yesterday, specifically breaking through the market's psychological resistance level at the $2070 mark despite market buying pressure weakening. It is currently trading at a new high of $2271 after hitting the 2289-2290 mark, marking a 0.45% decline on the day. So what are the reasons and factors that are driving this yellow metal to explode?
Moving forward: Gold prices (XAU/USD) fell again after hitting a new record high early this Wednesday and remained on the defensive during the first half of the European session. Stronger macro data coming out of the United States points to a resilient economy and raises doubts about whether the Federal Reserve will cut interest rates three times this year. The change in outlook sent U.S. Treasury yields higher and prompted some profit-taking around the unyielding yellow metal, especially after the recent sharp rally seen in prices. ants in the past week or so.
On the new outlook for XAUUSD: any meaningful correction in Gold prices seems elusive given the geopolitical risks stemming from the protracted Russia-Ukraine war and the risk of the conflict expanding Israel-Hamas to the wider Middle East region. This, coupled with uncertainty over the Fed's interest rate cut plans and the devastating earthquake in Taiwan, should act as a boost for the safe-haven precious metal amid the US Dollar backdrop. (USD) modestly discounted. Traders are now looking to US macro data and speeches from Fed officials for fresh momentum.
The "buy the dip" trading strategy for gold continues as long as support around 2045 -2040 holds. A break below this level will result in a significant price decline, while a sustainment will result in an increase in price. It is expected that the Uptrend could strengthen further if it receives strong buying pressure from this support level and tests the EMA 34.89.
What do you think about the XAUUSD trend today and in 2024?
Today let's discuss XAUUSD.
Overall, XAUUSD experienced significant volatility yesterday, specifically breaking through the market's psychological resistance level at the $2070 mark despite market buying pressure weakening. It is currently trading at a new high of $2271 after hitting the 2289-2290 mark, marking a 0.45% decline on the day. So what are the reasons and factors that are driving this yellow metal to explode?
Moving forward: Gold prices (XAU/USD) fell again after hitting a new record high early this Wednesday and remained on the defensive during the first half of the European session. Stronger macro data coming out of the United States points to a resilient economy and raises doubts about whether the Federal Reserve will cut interest rates three times this year. The change in outlook sent U.S. Treasury yields higher and prompted some profit-taking around the unyielding yellow metal, especially after the recent sharp rally seen in prices. ants in the past week or so.
On the new outlook for XAUUSD: any meaningful correction in Gold prices seems elusive given the geopolitical risks stemming from the protracted Russia-Ukraine war and the risk of the conflict expanding Israel-Hamas to the wider Middle East region. This, coupled with uncertainty over the Fed's interest rate cut plans and the devastating earthquake in Taiwan, should act as a boost for the safe-haven precious metal amid the US Dollar backdrop. (USD) modestly discounted. Traders are now looking to US macro data and speeches from Fed officials for fresh momentum.
The "buy the dip" trading strategy for gold continues as long as support around 2045 -2040 holds. A break below this level will result in a significant price decline, while a sustainment will result in an increase in price. It is expected that the Uptrend could strengthen further if it receives strong buying pressure from this support level and tests the EMA 34.89.
What do you think about the XAUUSD trend today and in 2024?
Comment:
Gold price (XAU/USD) falls after refreshing all-time highs near $2,290 in Wednesday’s late European session on multiple tailwinds. The near-term demand for the precious metal is still upbeat due to deepening geopolitical tensions in Eastern Europe and the Middle East regions. Escalating geopolitical tensions have increased demand for safe-haven assets, providing strength to bullions. This is offsetting the impact of higher bond yields and waning Federal Reserve (Fed) rate cut expectations for the June meeting.
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