XAUUSD | Price Action | New perspective | follow-up detailsThe yellow metal is potentially heading for weekly losses amid a surge in the US dollar's strength. Despite a slight relief on Friday, gold had been grappling with significant losses from the previous session when data revealed that the US economy outperformed expectations in the second quarter.
This impressive reading bolstered the dollar and pushed gold over 1% lower, as traders speculated that the robustness of the US economy might prompt the Federal Reserve to continue raising interest rates.
The release of this data followed the Federal Reserve's recent interest rate hike, with indications of another potential hike later this year, as inflation remains higher than the central bank's target range.
Rising US interest rates are not favorable for gold and other metals, as they increase the opportunity cost of holding non-yielding assets. Consequently, the strong GDP reading caused gold to erase all its gains for the week, with the precious metal now trading approximately 0.8% lower.
XAUUSD Technical Analysis:
In this recorded video, we embarked on an in-depth analysis of XAUUSD's price action, focusing on intricate patterns of accumulation and distribution. By dissecting past price movements, interpreting market behaviors, and identifying recurring trends, we gained invaluable insights into the motivations and actions of both buyers and sellers.
Our attention was drawn to the key level for the second consecutive week at $1,960, which held tremendous importance for the week ahead. It served as a pivotal focal point, and the reactions witnessed within this zone, particularly in light of upcoming high-impact economic events, were indispensable in guiding our precise trading decisions.
Let's replicate the triumphs of the previous week and prepare ourselves to seize the opportunities that lay ahead! With these updates and comprehensive analysis, we are equipped with the necessary tools to make well-informed and strategic trading choices throughout the week.
The stage was set, the spotlight was on, and the thrilling drama of the gold market awaited your presence. Stay tuned for further updates as we closely monitor the market developments impacting gold's outlook. Remember to exercise caution and consider the implications of economic indicators on your trading decisions.
Happy trading!
Disclaimer Notice:
Please be aware that margin trading in the foreign exchange market, including commodity trading, CFDs, stocks, and other instruments, carries a high level of risk and may not be suitable for all investors. The content of this speculative material, including all data, is provided by me for educational purposes only and to assist in making independent investment decisions. All information presented here is for reference purposes only, and I do not assume any responsibility for its accuracy.
It is important that you carefully evaluate your investment experience, financial situation, investment objectives, and risk tolerance level. Before making any investment, it is advisable to consult with your independent financial advisor to assess the suitability of your circumstances.
Please note that I cannot guarantee the accuracy of the information provided, and I am not liable for any loss or damage that may directly or indirectly result from the content or the receipt of any instructions or notifications associated with it.
Remember that past performance is not necessarily indicative of future results. Keep this in mind while considering any investment opportunities.
