From last 3 days gold is moving up and down. No clear direction because of geopolitical tensions in the Middle East. If you see few days candles then you will understand that its trying to break its main support and resistance. Gold has douched its main resistance of 2063 multiple times and same with its main support of 2016. I still believe it will break 2000 area in coming days.
There are lot of reasons for its pump:
The upward movement in the price of the yellow metal is attributed to the risk-averse due to the geopolitical tensions in the Middle East, coupled with the speculation regarding potential rate cuts by the Federal Reserve (Fed) in March.
The concerns over the escalation of the Israel-Gaza conflict have intensified, especially after Iran-led Houthis fired an anti-ship cruise missile at the USS Laboon in the Red Sea on Monday. This development has contributed to increased demand for Gold prices, a traditional safe-haven asset during times of heightened geopolitical uncertainty. Market participants remain vigilant for potential impacts on shipments in the Strait of Hormuz while closely monitoring Iran's response to recent geopolitical developments.
The US Dollar (USD) hovers around 102.40 with a negative bias, influenced by the decline in US Treasury yields, possibly triggered by the softer Producer Price Index (PPI) data from the United States (US). The DXY has trimmed its intraday gains as a result of the drop in US Treasury yields. The 2-year and 10-year yields on US bond coupons trade lower at 4.14% and 3.94%, respectively, at the moment.
Barclays also revised its forecast on Friday for the first Federal Reserve rate cut, moving it to March from June. This change in outlook has shifted market sentiment towards expectations of an easing monetary policy by the Fed, putting downward pressure on the Greenback. In a note released on Friday, analysts from Barclays expressed their expectation for the Federal Open Market Committee (FOMC) to reduce the Fed Funds rate by 25 basis points at the March meeting.
Most Watchable areas:
2063-2073 for upward movement
2030-2015 for downward movement
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!
There are lot of reasons for its pump:
- Risk-averse sentiment due to the Red Sea situation.
- Israel-Gaza conflict intensified after Houthi attacked a US Navy vessel.
- US Treasury yields contribute to downward pressure on the US Dollar.
- Barclays revision of the Fed rate cut has changed market sentiment.
The upward movement in the price of the yellow metal is attributed to the risk-averse due to the geopolitical tensions in the Middle East, coupled with the speculation regarding potential rate cuts by the Federal Reserve (Fed) in March.
The concerns over the escalation of the Israel-Gaza conflict have intensified, especially after Iran-led Houthis fired an anti-ship cruise missile at the USS Laboon in the Red Sea on Monday. This development has contributed to increased demand for Gold prices, a traditional safe-haven asset during times of heightened geopolitical uncertainty. Market participants remain vigilant for potential impacts on shipments in the Strait of Hormuz while closely monitoring Iran's response to recent geopolitical developments.
The US Dollar (USD) hovers around 102.40 with a negative bias, influenced by the decline in US Treasury yields, possibly triggered by the softer Producer Price Index (PPI) data from the United States (US). The DXY has trimmed its intraday gains as a result of the drop in US Treasury yields. The 2-year and 10-year yields on US bond coupons trade lower at 4.14% and 3.94%, respectively, at the moment.
Barclays also revised its forecast on Friday for the first Federal Reserve rate cut, moving it to March from June. This change in outlook has shifted market sentiment towards expectations of an easing monetary policy by the Fed, putting downward pressure on the Greenback. In a note released on Friday, analysts from Barclays expressed their expectation for the Federal Open Market Committee (FOMC) to reduce the Fed Funds rate by 25 basis points at the March meeting.
Most Watchable areas:
2063-2073 for upward movement
2030-2015 for downward movement
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!
