Still nothing changed and gold is moving within range and no proper direction. The overnight bounce from the 50-day SMA and the subsequent move up as well as positive oscillators on the daily chart favor bullish traders. That said, it will still be prudent to wait for a sustained strength beyond the 2040-2042 supply zone before positioning for additional gains. The Gold price might then accelerate the momentum towards last Friday's swing high, around the 2064 area, en route to the 2077 area. Some follow-through buying will negate any near-term negative outlook and set the stage for a move towards reclaiming the 2100 round figure.
On the other side, the 2022 area now seems to protect the immediate downside ahead of the multi-week low, around the 2013 region, or the 50-day SMA tested on Thursday. A convincing break below the latter will be seen as a fresh trigger for bearish traders and drag the Gold price to the 2000 psychological mark. The downward trajectory could extend further towards the December swing low, around the 1973 region before the XAU/USD eventually drops to the 1965-1963 confluence, comprising the 100- and 200-day SMAs.
Yesterday It has touched the 50MA at 2013 and then bounced back 2036 atm. Data released on yesterday showed consumer prices in the United States (US) increased more than expected in December. This, along with hawkish remarks from Fed officials, fueled speculations that interest rates could stay higher for longer. The markets, however, are pricing in a greater chance of a rate cut in March, which continues to undermine the US Dollar (USD) and lends support to the non-yielding Gold price.
Apart from this, geopolitical risks stemming from the Israel-Hamas war and persistent worries about a slow economic recovery in China further seem to benefit the safe-haven XAU/USD. That said, the aforementioned fundamental backdrop makes it prudent to wait for strong follow-through buying before confirming that the Gold price has formed a near-term bottom and positioning for any meaningful appreciating move.
Note
Please never follow anyone blindly and always remember following key points:
1- First and Last thing in trading is patience.
2- Risk management in trading is a Key so use your money accordingly.
3- Please Don't think I'm always right. I could be wrong, same as every other trader.
4- I always posted my thoughts, not financial advice.
5- Please use your mind and try to get knowledge about market. It will help you in future
Thank you and Good Luck!
On the other side, the 2022 area now seems to protect the immediate downside ahead of the multi-week low, around the 2013 region, or the 50-day SMA tested on Thursday. A convincing break below the latter will be seen as a fresh trigger for bearish traders and drag the Gold price to the 2000 psychological mark. The downward trajectory could extend further towards the December swing low, around the 1973 region before the XAU/USD eventually drops to the 1965-1963 confluence, comprising the 100- and 200-day SMAs.
Yesterday It has touched the 50MA at 2013 and then bounced back 2036 atm. Data released on yesterday showed consumer prices in the United States (US) increased more than expected in December. This, along with hawkish remarks from Fed officials, fueled speculations that interest rates could stay higher for longer. The markets, however, are pricing in a greater chance of a rate cut in March, which continues to undermine the US Dollar (USD) and lends support to the non-yielding Gold price.
Apart from this, geopolitical risks stemming from the Israel-Hamas war and persistent worries about a slow economic recovery in China further seem to benefit the safe-haven XAU/USD. That said, the aforementioned fundamental backdrop makes it prudent to wait for strong follow-through buying before confirming that the Gold price has formed a near-term bottom and positioning for any meaningful appreciating move.
Note
Please never follow anyone blindly and always remember following key points:
1- First and Last thing in trading is patience.
2- Risk management in trading is a Key so use your money accordingly.
3- Please Don't think I'm always right. I could be wrong, same as every other trader.
4- I always posted my thoughts, not financial advice.
5- Please use your mind and try to get knowledge about market. It will help you in future
Thank you and Good Luck!
Comment:
So it has broken 2030 as well but it should break 2016 and then door will be open for 2002-1996. Still holding well from top but also buying from bottom to increase balance. I Will never say that confirm short or confirm buy bcz I know bcz I don't want that anyone face loss bcz of me