I have already mentioned in yesterday chart that it will not go up without retesting 2016 but if it breaks this point then it can test 2002-1996 area. Right now on daily chart its main resistance is 2055 while support is 1988. At the moment gold is still holding 50 day MA which is at 2016 and if it breaks then it will test 2002-1996 without any doubt.
Anyway from a technical perspective, the 50-day MA, currently around the 2016 area, followed by the 2013 region, or the monthly low, could protect the immediate downside ahead of the 2000 psychological mark. A convincing break below the latter will be seen as a fresh trigger for bearish traders and drag the Gold price towards the December swing low, around the 1973 zone. The gold could eventually drop to the 1968-1963 confluence, comprising the 100- and 200-day MAs.
There are lot of reasons for its dump and pump:
- Gold price is undermined by receding bets for an early Fed rate cut and a bullish USD.
- The yield on the benchmark 10-year US government bond holds steady above the 4.0% threshold, underpinning the US Dollar and capping the non-yielding yellow metal.
- The risk of a further escalation of tensions in the Middle East does little to provide any respite to the safe-haven XAU/USD or impress bullish traders.
- On a quarterly basis, Chinese GDP expanded by 1.0% in Q3 vs. 1.0% expected, while December Retail Sales and Industrial Production rose by 7.4% YoY and 6.8% YoY, respectively.
- The geopolitical risks, along with China's economic woes, might hold back traders from placing aggressive bearish bets around the metal and help limit any further losses.
- Apart from this, scheduled speeches by Fed Governors Michael Barr and Michelle Bowman might influence the USD and provide some impetus to the commodity.
Most Watchable areas:
2055-2046 for upward movement
2016-2002 for downward movement
Note
Please never follow anyone blindly and always remember following key points:
1- First and Last thing in trading is patience.
2- Risk management in trading is a Key so use your money accordingly.
3- Please Don't think I'm always right. I could be wrong, same as every other trader.
4- I always posted my thoughts, not financial advice.
5- Please use your mind and try to get knowledge about market. It will help you in future
Thank you and Good Luck!
Anyway from a technical perspective, the 50-day MA, currently around the 2016 area, followed by the 2013 region, or the monthly low, could protect the immediate downside ahead of the 2000 psychological mark. A convincing break below the latter will be seen as a fresh trigger for bearish traders and drag the Gold price towards the December swing low, around the 1973 zone. The gold could eventually drop to the 1968-1963 confluence, comprising the 100- and 200-day MAs.
There are lot of reasons for its dump and pump:
- Gold price is undermined by receding bets for an early Fed rate cut and a bullish USD.
- The yield on the benchmark 10-year US government bond holds steady above the 4.0% threshold, underpinning the US Dollar and capping the non-yielding yellow metal.
- The risk of a further escalation of tensions in the Middle East does little to provide any respite to the safe-haven XAU/USD or impress bullish traders.
- On a quarterly basis, Chinese GDP expanded by 1.0% in Q3 vs. 1.0% expected, while December Retail Sales and Industrial Production rose by 7.4% YoY and 6.8% YoY, respectively.
- The geopolitical risks, along with China's economic woes, might hold back traders from placing aggressive bearish bets around the metal and help limit any further losses.
- Apart from this, scheduled speeches by Fed Governors Michael Barr and Michelle Bowman might influence the USD and provide some impetus to the commodity.
Most Watchable areas:
2055-2046 for upward movement
2016-2002 for downward movement
Note
Please never follow anyone blindly and always remember following key points:
1- First and Last thing in trading is patience.
2- Risk management in trading is a Key so use your money accordingly.
3- Please Don't think I'm always right. I could be wrong, same as every other trader.
4- I always posted my thoughts, not financial advice.
5- Please use your mind and try to get knowledge about market. It will help you in future
Thank you and Good Luck!
Comment:
At last it has broken it main support of 2016 and touched 2002. Now its main 1989 and then1973. If 1973 broken then welcome to 1950. Over all chart is going according to plan and still sell positions are open and waiting for final target. Best of luck
Comment:
Remember no need to jump in at this time for short. Just wait for retrace and may be it retest 2015 because for more down it should recover something. No need to buy because gold is very pumped for downward movement so be careful. Thanks