Gold, Short-Term sell

OANDA:XAUUSD   Gold Spot / U.S. Dollar
Weekly gold analysis

πŸ“Œ Key points and overview:
We can think about it to buy at lower prices with the lowest risk.
Disappointing home and building sales data could bolster expectations that the Federal Reserve will slow its rate of contraction.
End-of-week flows could change the sentiment and play an important role in keeping gold on the sidelines ahead of next week's Fed meeting minutes.

πŸ“ Analysis:

About 10% growth last week! What can be said? Sharpe's move last week narrows the way for Saud in the short term. Gold needs correction.
The Federal Reserve will likely indicate that it will continue to raise interest rates. What we expect according to recent job market data.
It is true that we are cautious because the change in the contractionary policies of the Federal Reserve is likely, but we cannot expect such a short-term reduction in inflation data alone.
We will need at least a few months of consecutive downward inflation.
On the other hand, the sudden growth of gold last week showed how attractive the price of gold is for buyers, I mean the prices of $1,620. They think these prices are cheap.

Since we don't know how strong the Federal Reserve will be in its upcoming meetings, or we don't know if they will talk more softly, selling gold is a bit risky.
We have to wait because the Fed's job with inflation is not done yet. On the other hand, many buyers are waiting at the low prices area.
Our suggestion is simple, let's wait for this last growth of gold to rest in a correction, we can think about it to buy in lower prices with lowest risk.

The Fed's pressure on the dollar to control inflation will put the US into a recession.
We cannot accurately determine the magnitude of this recession, but what is clear is that it will be a recession, and the winners of this recession are gold buyers.

πŸ“‰ Technical view:

The head and shoulder pattern is ready to be broken on the 1-hour time frame. The tide of this pattern can make gold bearish in the short term.
You can accompany gold in the downward movement by keeping the risk low because the Federal Reserve supports you.
But our team tries to be on the lookout to be a buyer of gold at lower prices.

πŸ”Έ Failure of 1745$ levels can leads the way down for gold to fall to the 1720$ and 1700$ levels.

πŸ“° Important calendar events:
This week we will have construction data. Disappointing data could reinforce expectations of a slowdown in the Fed's pace of contraction. The decline in the value of the US dollar can be the engine for gold to rise again.
However, End-of-week flows could change sentiment and play an important role in keeping gold on the sidelines ahead of next week's Fed meeting minutes.


The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.