Gold Market Analysis: Recent Trends and Prospects
Let's delve into the current gold market dynamics, understanding recent changes and their impact on this precious metal's investment landscape.
Recent Trends and Impact:
XAU/USD dipped to $1,896.33 per troy ounce on Tuesday, marking its lowest since June last year. Presently, it trades around $1,906 as reduced demand for the US Dollar coincided with Wall Street's opening. However, amidst this scenario, the financial market remains cautious, and the Greenback capitalizes on it. Softer-than-expected economic data from China earlier in the day influenced market sentiment, as concerns about a major Asian player's slowdown ripple globally.
US Data and Influence:
US data brings encouraging news as Retail Sales surged by 0.7% in July, surpassing the estimated 0.4%. The controlled group saw an impressive 1% growth, twice the previous figure. While not enough to entirely shift market sentiment, this positive news helped curb stock price declines. Though Wall Street trades in the red, it's a relief that it didn't approach previous lows upon opening.
Yield Impact and Conclusion:
Simultaneously, government bond yields eased from recent highs, pressuring the US Dollar later in the day. This yield decrease follows Fitch Ratings' caution about potential downgrades for some US banks.
Key Support Levels: 1,896.30 1,888.30 1,879.95
Key Resistance Levels: 1,915.30 1,921.1 1,934.85
Trading Recommendation for the Day:
Consider SELL XAUUSD at 1906-1907
Stoploss: 1910
Take Profit 1: 1900
Take Profit 2: 1895
Take Profit 3: 1890
Note: Always set TP and SL during trading for maximum efficiency.
Let's Stay Tuned for Gold in the Coming Week, and Don't Miss Any Opportunities!
Recent Trends and Impact:
XAU/USD dipped to $1,896.33 per troy ounce on Tuesday, marking its lowest since June last year. Presently, it trades around $1,906 as reduced demand for the US Dollar coincided with Wall Street's opening. However, amidst this scenario, the financial market remains cautious, and the Greenback capitalizes on it. Softer-than-expected economic data from China earlier in the day influenced market sentiment, as concerns about a major Asian player's slowdown ripple globally.
US Data and Influence:
US data brings encouraging news as Retail Sales surged by 0.7% in July, surpassing the estimated 0.4%. The controlled group saw an impressive 1% growth, twice the previous figure. While not enough to entirely shift market sentiment, this positive news helped curb stock price declines. Though Wall Street trades in the red, it's a relief that it didn't approach previous lows upon opening.
Yield Impact and Conclusion:
Simultaneously, government bond yields eased from recent highs, pressuring the US Dollar later in the day. This yield decrease follows Fitch Ratings' caution about potential downgrades for some US banks.
Key Support Levels: 1,896.30 1,888.30 1,879.95
Key Resistance Levels: 1,915.30 1,921.1 1,934.85
Trading Recommendation for the Day:
Consider SELL XAUUSD at 1906-1907
Stoploss: 1910
Take Profit 1: 1900
Take Profit 2: 1895
Take Profit 3: 1890
Note: Always set TP and SL during trading for maximum efficiency.
Let's Stay Tuned for Gold in the Coming Week, and Don't Miss Any Opportunities!
