XAU/USD | GOLDSPOT | New perspective | follow-up details

At the close of last week's trading, Gold has shown resilience by surpassing the $2,000 mark. Recent US economic indicators hint at persistent inflation, despite signals of potential policy adjustments from the Federal Reserve. Notably, Producer Price Index (PPI) data exceeded expectations, underscoring the Fed's ongoing efforts to manage inflation. Additionally, a positive shift in Consumer Sentiment reflects American optimism towards economic conditions. Considering these factors, Gold's trajectory remains intertwined with US economic prospects. Potential upticks in inflation could drive up US Treasury bond yields, leading to anticipated XAU/USD downside movements. Conversely, if inflation aligns with the Fed's targets, the possibility of rate cuts may weaken the US Dollar, potentially supporting XAU/USD upside potentials. This video delves into dissecting the current market landscape to help navigate strategic positioning for upcoming market movements.

XAUUSD Technical Overview:
In this video, we conducted a comprehensive analysis of the XAUUSD chart, utilizing both technical and fundamental perspectives. Our examination included an in-depth study of key levels, historical price movements, market behaviors, and the interplay between buyers and sellers, aiming to unveil potential trading opportunities.

Our focal point for the week is the $1,985 zone, endowed with historical significance, rendering it a pivotal level. The sustainability of bullish momentum above this zone could pave the way for continued buying pressure, potentially propelling prices to new highs. Conversely, a breach below the $1,985 level, coupled with persistent selling pressure, might signal a resurgence of bearish sentiment.

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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.

Comment:

Gold price starts the new week on a strong note, building on last week's recovery during the Asian session. Recent US economic data indicates persistent inflation, leading markets to reconsider expectations of a June interest rate cut by the Federal Reserve. This delay in rate cuts could impact safe haven assets negatively, as higher interest rates typically reduce their appeal compared to higher-yielding investments.

Moreover, we can not ignore the possibility that the escalating geopolitical tensions in the Middle East may further enhance the appeal of gold as a safe haven asset.

Looking ahead, the upcoming PBoC Interest Rate Decision on Tuesday and the release of the FOMC Minutes on Wednesday will undoubtedly shape market dynamics. Therefore, we will utilize the identified structures on the 1-hour timeframe to navigate trading activities leading up to these events effectively.

Good Morning

Trade active:

The price of gold is showing an increase in momentum leading up to the release of the FOMC Minutes. Yet, with recent robust US economic data exceeding expectations, market participants have tempered their anticipation for interest rate cuts. This shift may lend support to the US Dollar as the US economy resumes following yesterday's holiday. It is important to exercise caution and protect any buy positions, as this shift in expectations could potentially constrain the upward movement of gold prices.

Good Morning

Trade active:

#XAUUSD

UPDATE

protect all buy positions as we look out for more trading opportunities

Trade active:

#XAUUSD

UPDATE

Third buy position triggered; secure more profit.

Trade closed manually:

After securing a profit of over 180 pips, all buy positions have been closed as buyers encounter resistance around the 2,038 and 2,028 zone, indicating significant seller strength at this stage. Throughout the week, the US Dollar has struggled to assert itself. However, the failure of prices to breach the mentioned zone may prompt some profit-taking activities ahead of the pivotal FOMC meeting minutes, potentially facilitating a rebound for the US Dollar.

Any further upward movement in Gold prices appears restricted, as traders exercise caution and await clearer signals regarding the Federal Reserve's stance on interest rate cuts. This cautious approach could significantly impact short-term USD price dynamics, particularly amidst elevated US Treasury bond yields.

Given these considerations, we will strategically plan our next move based on the identified levels observed on the 1H timeframe.

Good Morning

Trade active:

All sell positions closed with modest profits as Gold prices resumed its upward trend. Despite a more optimistic market atmosphere, the US Dollar is facing challenges, even after the Federal Reserve's January meeting Minutes hinted at a more aggressive stance on interest rates. Surprisingly, the US Dollar is dropping in value which is helping boost the price of Gold.

Adding to this worries about tensions in the Middle East are giving Gold an extra boost, as investors seek safer assets.

Meanwhile, the minutes from the January FOMC meeting reinforced the expectation that the Fed will keep interest rates higher for longer due to ongoing inflation concerns and the resilient US economy. This expectation is keeping US Treasury bond yields high, which should help prevent the US Dollar from falling further, but might also make Gold a less attractive option.

Given these factors, it's wise to wait for Gold to convincingly break and remain accepted above the 2,032 zone before considering new bullish positions. We'll keep an eye on the chart levels for guidance in today's trading.

Good Morning

Comment:

#XAUUSD

UPDATE

Trade active:

#XAUUSD

Sell position triggered; protect position

Trade active:

We shall ensure to protect all sell positions as buying pressure picks up again, but stays below the ascending trendline. The market is now optimistic that the Federal Reserve will keep interest rates high for an extended period due to ongoing inflation and a strong economy, supported by recent comments from Fed officials. This keeps US Treasury bond yields high and weakens gold prices, especially with investors favoring riskier assets like stocks over safe-haven gold. However, tensions in the Middle East could temper market optimism. Despite the US dollar struggling to gain momentum, it may still limit gold's decline. With the current structure, gold prices may see small gains this week. As market participants wrap up trading activities ahead of the weekend, we'll use the identified levels on the chart to guide our trading decisions today.

Good Morning