Gold prices went up on Monday as the demand for the US dollar declined gradually in a risk-friendly atmosphere. XAU/USD reached a high of $1,930.70 per troy ounce but has now settled at $1,924 as initial optimism faded during the day.
The stock market rebounded following weekend news that indicated economic troubles in Asia were diminishing. On one hand, China reported a 0.3% increase in the Consumer Price Index (CPI) for August, a 0.1% rise compared to the previous year, reversing the previous negative trend and suggesting economic recovery. On the other hand, the Governor of the Bank of Japan, Kazuo Ueda, mentioned that "BoJ may have enough data by the end of the year to decide whether they can end negative interest rates" and added that their focus would be on "a gradual exit." As a result, the safe-haven status of the US dollar decreased in the foreign exchange market.
Positive sentiment spread to Wall Street as all three major indices started the day trading in positive territory. Nevertheless, financial markets remained cautious ahead of significant events scheduled for the upcoming weekend. Speculators are waiting for the release of the US Consumer Price Index (CPI) for August, with an expected annual inflation rate of 3.6%, slightly higher than the previous 3.5%. Additionally, the European Central Bank (ECB) is set to announce its monetary policy decision on Thursday. Many anticipate that the central bank will keep interest rates unchanged, although a surprise 25 basis points (bps) rate hike is not entirely ruled out, given the persistent pressure of high inflation.
During this time, US indices continued to show gains, although they were relatively modest. The Nasdaq Composite performed the best, rising by 75 points or 0.55%. Meanwhile, stronger yields on US Treasury bonds supported the recovery of the US dollar. The 10-year Treasury yield is currently at 4.29%, up by 3 bps, while the 2-year Treasury yield remained steady at 4.98%.
TRADING STRATEGY:
SELL XAU/USD AROUND THE PRICE RANGE OF 1925 - 1928
Stop Loss: 1932
Take Profit 1: 1920
Take Profit 2: 1915
Take Profit 3: 1910
BUY XAU/USD AROUND THE PRICE RANGE OF 1908 - 1912
Stop Loss: 1905
Take Profit 1: 1915
Take Profit 2: 1920
Take Profit 3: 1925
Note: Always risk only 1% of your account to safeguard your capital. Do not risk more than 5% of your capital within the nearest 10 price levels. Remember to set stop-loss orders in all scenarios. Be cautious and manage your trades based on your current capital.
The stock market rebounded following weekend news that indicated economic troubles in Asia were diminishing. On one hand, China reported a 0.3% increase in the Consumer Price Index (CPI) for August, a 0.1% rise compared to the previous year, reversing the previous negative trend and suggesting economic recovery. On the other hand, the Governor of the Bank of Japan, Kazuo Ueda, mentioned that "BoJ may have enough data by the end of the year to decide whether they can end negative interest rates" and added that their focus would be on "a gradual exit." As a result, the safe-haven status of the US dollar decreased in the foreign exchange market.
Positive sentiment spread to Wall Street as all three major indices started the day trading in positive territory. Nevertheless, financial markets remained cautious ahead of significant events scheduled for the upcoming weekend. Speculators are waiting for the release of the US Consumer Price Index (CPI) for August, with an expected annual inflation rate of 3.6%, slightly higher than the previous 3.5%. Additionally, the European Central Bank (ECB) is set to announce its monetary policy decision on Thursday. Many anticipate that the central bank will keep interest rates unchanged, although a surprise 25 basis points (bps) rate hike is not entirely ruled out, given the persistent pressure of high inflation.
During this time, US indices continued to show gains, although they were relatively modest. The Nasdaq Composite performed the best, rising by 75 points or 0.55%. Meanwhile, stronger yields on US Treasury bonds supported the recovery of the US dollar. The 10-year Treasury yield is currently at 4.29%, up by 3 bps, while the 2-year Treasury yield remained steady at 4.98%.
TRADING STRATEGY:
SELL XAU/USD AROUND THE PRICE RANGE OF 1925 - 1928
Stop Loss: 1932
Take Profit 1: 1920
Take Profit 2: 1915
Take Profit 3: 1910
BUY XAU/USD AROUND THE PRICE RANGE OF 1908 - 1912
Stop Loss: 1905
Take Profit 1: 1915
Take Profit 2: 1920
Take Profit 3: 1925
Note: Always risk only 1% of your account to safeguard your capital. Do not risk more than 5% of your capital within the nearest 10 price levels. Remember to set stop-loss orders in all scenarios. Be cautious and manage your trades based on your current capital.
