XAUUSD Closing the best month, waiting for new highs
Hello dear friends! That's the end of another trading week! Let's recap the markets from last week and discuss our new plan for next week, shall we?
Overall, the bullish trend of XAUUSD remained stable from last week. The all-time high resistance level at 2222 USD still cannot make XAUUSD turn down. As of closing time, the gold price on Kitco closed the week at 2,233 USD/ounce. Gold futures price for delivery in April 2024 on the Comex New York floor is trading at 2,234 USD/ounce. XAUUSD is trading mostly in the green, having undergone a significant bull run last week with the price rising above the $2200 level (as shown on the 1h chart).
Recently, the US Federal Reserve (Fed) has signaled that there will be three interest rate cuts this year, even if inflation is above the target level of 2%. According to CME's FedWatch tool, traders are currently pricing in a 64% chance that the Fed will cut interest rates in June.
Looking ahead: gold prices could rise further if the market expects a deeper Fed rate cut cycle. Lower interest rates reduce the opportunity cost of holding gold.
Besides, gold is often considered a "safe haven" in times of political tension. The Russia-Ukraine conflict continues to escalate. The upcoming US election, China's economic growth decline,... also have a positive impact on gold prices.
Technically: H4 setup shows that With the current trend, a price increase next week is possible. The expected target in this case could be 2250, but it may not last long as resistance approaches. There is evidence that once a resistance level is reached, it will continue its downward movement, as indicated by the unchanged EMA.
What do you think about XAUUSD?
Overall, the bullish trend of XAUUSD remained stable from last week. The all-time high resistance level at 2222 USD still cannot make XAUUSD turn down. As of closing time, the gold price on Kitco closed the week at 2,233 USD/ounce. Gold futures price for delivery in April 2024 on the Comex New York floor is trading at 2,234 USD/ounce. XAUUSD is trading mostly in the green, having undergone a significant bull run last week with the price rising above the $2200 level (as shown on the 1h chart).
Recently, the US Federal Reserve (Fed) has signaled that there will be three interest rate cuts this year, even if inflation is above the target level of 2%. According to CME's FedWatch tool, traders are currently pricing in a 64% chance that the Fed will cut interest rates in June.
Looking ahead: gold prices could rise further if the market expects a deeper Fed rate cut cycle. Lower interest rates reduce the opportunity cost of holding gold.
Besides, gold is often considered a "safe haven" in times of political tension. The Russia-Ukraine conflict continues to escalate. The upcoming US election, China's economic growth decline,... also have a positive impact on gold prices.
Technically: H4 setup shows that With the current trend, a price increase next week is possible. The expected target in this case could be 2250, but it may not last long as resistance approaches. There is evidence that once a resistance level is reached, it will continue its downward movement, as indicated by the unchanged EMA.
What do you think about XAUUSD?
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