Hello everyone, as we all know the market action discounts everything :)
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Gold was up on Monday morning, but it is on track for its largest monthly decrease since September 2021 and The dollar, which normally moves in the opposite direction of gold, fell slightly on Monday but remained near to its 18-month high set the previous week.
In its most recent policy decision, the Federal Reserve of the United States signaled interest rate increases beginning in March 2022. Investors are now awaiting the Reserve Bank of Australia's policy decisions, which are due on Tuesday. The European Central Bank and the Bank of England will also make policy decisions on Thursday.
possible scenarios for the market :
The market is trading at 1790.87 at the time of writing near the support level of 1786.89 where we might see a battle between the Bulls and Bears over control, if the Bulls were able to win then we will see a bounce in price that will lead the market to the 1812.13 levels.
If the bears were able to keep control tho then we will see a further drop that will reach the support level located at 1765.53 or even the 1721 level.
Technical indicators show :
1) The market is below the 5 10 20 50 100 and 200 MA and EMA (Strong Bearish sign)
2) The MACD is still above the 0 line indicating a Bullish market, but a negative crossover is happening between the MACD line and the Signal line.
3) The RSI is at 40.87 showing weakness in the market with no major divergences on the chart.
Daily Support & Resistance points :
support Resistance
1) 1788.14 1) 1790.38
2) 1787.18 2) 1791.66
3) 1785.90 3) 1792.62
Fundamental point of view :
The Reserve Bank of Australia (RBA) is expected to cease its quantitative easing (QE) program on Tuesday, while the Bank of England (BoE) is expected to raise the key rate by 25 basis points (bps) on 'Super Thursday.' The actions of hawkish central banks are likely to keep gold bulls at bay.
If Friday's low of $1,780 holds, a challenge of the December 16 bottoms of $1,776 is likely. A sustained move below the latter will open doors to the psychological barrier of $1,750.
On the other hand, bulls will first encounter the horizontal 100-Daily Moving Average (DMA) at $1,795 on the route to recovery. The next key obstacle is the bearish 50-day moving average at $1,801, over which the 200-day moving average at $1,806 would operate as a powerful supply zone. If the recovery trend continues, gold will look to test the wedge support-turned-resistance level at $1,811.
This is my personal opinion done with technical analysis of the market price and research online from Fundamental Analysts and News for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.
_________________________________Make sure to Like and Follow if you like the idea_________________________________
Gold was up on Monday morning, but it is on track for its largest monthly decrease since September 2021 and The dollar, which normally moves in the opposite direction of gold, fell slightly on Monday but remained near to its 18-month high set the previous week.
In its most recent policy decision, the Federal Reserve of the United States signaled interest rate increases beginning in March 2022. Investors are now awaiting the Reserve Bank of Australia's policy decisions, which are due on Tuesday. The European Central Bank and the Bank of England will also make policy decisions on Thursday.
possible scenarios for the market :
The market is trading at 1790.87 at the time of writing near the support level of 1786.89 where we might see a battle between the Bulls and Bears over control, if the Bulls were able to win then we will see a bounce in price that will lead the market to the 1812.13 levels.
If the bears were able to keep control tho then we will see a further drop that will reach the support level located at 1765.53 or even the 1721 level.
Technical indicators show :
1) The market is below the 5 10 20 50 100 and 200 MA and EMA (Strong Bearish sign)
2) The MACD is still above the 0 line indicating a Bullish market, but a negative crossover is happening between the MACD line and the Signal line.
3) The RSI is at 40.87 showing weakness in the market with no major divergences on the chart.
Daily Support & Resistance points :
support Resistance
1) 1788.14 1) 1790.38
2) 1787.18 2) 1791.66
3) 1785.90 3) 1792.62
Fundamental point of view :
The Reserve Bank of Australia (RBA) is expected to cease its quantitative easing (QE) program on Tuesday, while the Bank of England (BoE) is expected to raise the key rate by 25 basis points (bps) on 'Super Thursday.' The actions of hawkish central banks are likely to keep gold bulls at bay.
If Friday's low of $1,780 holds, a challenge of the December 16 bottoms of $1,776 is likely. A sustained move below the latter will open doors to the psychological barrier of $1,750.
On the other hand, bulls will first encounter the horizontal 100-Daily Moving Average (DMA) at $1,795 on the route to recovery. The next key obstacle is the bearish 50-day moving average at $1,801, over which the 200-day moving average at $1,806 would operate as a powerful supply zone. If the recovery trend continues, gold will look to test the wedge support-turned-resistance level at $1,811.
This is my personal opinion done with technical analysis of the market price and research online from Fundamental Analysts and News for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.