Gold price gained traction and climbed above $1,820 after having spent the first half of the day in a tight range near $1,810. Although the benchmark 10-year US T-bond yield stays in positive territory near $3.95%, the renewed US Dollar weakness fuels the pair's rebound on Tuesday.
Financial markets have been a two-tale story for the early part of 2023, in which Gold price has reflected in its price action like no other asset. XAU/USD rode an uptrend during all of January with the market optimism about inflation slowing down and constant Federal Reserve dovish talk, only to see a drastic turnaround back to the old dynamics in February after a hot US Nonfarm Payrolls (NFP) report. The US economy adding more than 500K jobs in the month of January shifted the market expectations for the Fed easing its monetary policy, and the US Dollar has come back to the market King throne.
Gold price opened the year at $1,823.76 and reached a year-to-date high of $1,960 on February 2, right in between the first Federal Reserve meeting of the year and the surprising release of the US jobs report for January. Since then, the ongoing downtrend has been relentless, reaching levels below the yearly open, around $1,800.
Support level: 1,806.50 1,791.20 1,784.60
Resistances: 1,821.60 1,834.00 1,845.99
Trading recommendation:
Sell 1825 1824
Stop loss 1827
Take profit 1: 1810
Take profit 2: 1807
Take profit 3: 1800
Note: Always set TP and SL in all trading cases
If you have any questions or support, please leave a comment
Financial markets have been a two-tale story for the early part of 2023, in which Gold price has reflected in its price action like no other asset. XAU/USD rode an uptrend during all of January with the market optimism about inflation slowing down and constant Federal Reserve dovish talk, only to see a drastic turnaround back to the old dynamics in February after a hot US Nonfarm Payrolls (NFP) report. The US economy adding more than 500K jobs in the month of January shifted the market expectations for the Fed easing its monetary policy, and the US Dollar has come back to the market King throne.
Gold price opened the year at $1,823.76 and reached a year-to-date high of $1,960 on February 2, right in between the first Federal Reserve meeting of the year and the surprising release of the US jobs report for January. Since then, the ongoing downtrend has been relentless, reaching levels below the yearly open, around $1,800.
Support level: 1,806.50 1,791.20 1,784.60
Resistances: 1,821.60 1,834.00 1,845.99
Trading recommendation:
Sell 1825 1824
Stop loss 1827
Take profit 1: 1810
Take profit 2: 1807
Take profit 3: 1800
Note: Always set TP and SL in all trading cases
If you have any questions or support, please leave a comment
