Content: Gold prices reached their highest point in over two weeks on Friday as speculative buyers regained control after a brief pause on Thursday. This rally was inspired by the higher-than-expected inflation figures for September in the United States.
A prevailing viewpoint is that the Fed's tightening cycle is coming to an end, offsetting the strong potential impact of the September consumer price surge, providing fresh support for the precious metal. This support has been further bolstered by increased demand for safe-haven assets due to the growing uncertainty surrounding the latest crisis in the Middle East.
The recent bounce-back from the $1810 level (a six-and-a-half-month low) has surpassed 1947% of the $1810/$1895 bearish leg, revealing key resistance levels at $1900/$1961 (Fibonacci 61.8% retracement/psychological level) and boosting the prospects for further gains upon a breakout.
Daily price studies also support the recovery, and the price action this week (the largest weekly gain since mid-2000) is on the verge of forming a substantial weekly bullish candlestick pattern, contributing to the initial positive signal from last week's escape from the 200-week moving average (WMA) bear trap.
The broken 50% Fibonacci level and the 20-day moving average (20DMA) at $1878/$1876 will provide a safety net against potential downsides.
In conclusion, the outlook for XAU/USD remains positive, with inflation concerns and geopolitical tensions continuing to drive investor interest in gold. Key resistance levels and strong technical indicators suggest that further price increases may be on the horizon, making gold an attractive asset for investors seeking safety and potential returns in these uncertain times.
A prevailing viewpoint is that the Fed's tightening cycle is coming to an end, offsetting the strong potential impact of the September consumer price surge, providing fresh support for the precious metal. This support has been further bolstered by increased demand for safe-haven assets due to the growing uncertainty surrounding the latest crisis in the Middle East.
The recent bounce-back from the $1810 level (a six-and-a-half-month low) has surpassed 1947% of the $1810/$1895 bearish leg, revealing key resistance levels at $1900/$1961 (Fibonacci 61.8% retracement/psychological level) and boosting the prospects for further gains upon a breakout.
Daily price studies also support the recovery, and the price action this week (the largest weekly gain since mid-2000) is on the verge of forming a substantial weekly bullish candlestick pattern, contributing to the initial positive signal from last week's escape from the 200-week moving average (WMA) bear trap.
The broken 50% Fibonacci level and the 20-day moving average (20DMA) at $1878/$1876 will provide a safety net against potential downsides.
In conclusion, the outlook for XAU/USD remains positive, with inflation concerns and geopolitical tensions continuing to drive investor interest in gold. Key resistance levels and strong technical indicators suggest that further price increases may be on the horizon, making gold an attractive asset for investors seeking safety and potential returns in these uncertain times.
Comment:
The 4-hour window is developing quite well
Comment:
The 3-hour frame is progressing quite nicely, with no signs of reversal
Trade active
