USOIL: Strong Bearish Sentiment! Short!
My dear friends,
Today we will analyse USOIL together☺️
The in-trend continuation seems likely as the current long-term trend appears to be strong, and price is holding below a key level of 62.657 So a bearish continuation seems plausible, targeting the next low. We should enter on confirmation, and place a stop-loss beyond the recent swing level.
❤️Sending you lots of Love and Hugs❤️
Futures market
NG1!: Bulls Are Winning! Long!
My dear friends,
Today we will analyse NG1! together☺️
The market is at an inflection zone and price has now reached an area around 2.920 where previous reversals or breakouts have occurred.And a price reaction that we are seeing on multiple timeframes here could signal the next move up so we can enter on confirmation, and target the next key level of 2.958.Stop-loss is recommended beyond the inflection zone.
❤️Sending you lots of Love and Hugs❤️
SILVER: Market Sentiment & Price Action
Remember that we can not, and should not impose our will on the market but rather listen to its whims and make profit by following it. And thus shall be done today on the SILVER pair which is likely to be pushed down by the bears so we will sell!
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NATGAS: Growth & Bullish Forecast
Balance of buyers and sellers on the NATGAS pair, that is best felt when all the timeframes are analyzed properly is shifting in favor of the buyers, therefore is it only natural that we go long on the pair.
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Next Monday, gold prices will continue to trade at low levels.Next Monday, gold prices will continue to trade at low levels.
Gold prices closed slightly higher on a weekly basis, maintaining a strong bullish trend.
After briefly dipping to 3631 on Friday, the index quickly rebounded, showing a gradual upward trend.
The daily chart closed with a large, unbroken bullish candlestick.
Despite some short-term pullbacks, the bullish trend remains intact, and bullish sentiment remains optimistic for next week.
On the 4-hour chart, the moving averages have formed a golden cross again, and prices have continued to rise, breaking through the midline, showing strong momentum.
However, the Bollinger Bands have not yet opened, making direct buying difficult.
Following support, watch for 3676-72 and 3661-59. Trading strategies suggest buying based on pullbacks, and then gradually targeting 3695 and 3708 above.
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1: Gold prices rose slightly on Friday, closing around $3685, but the overall market lacked sustained strong buying momentum.
2: The Federal Reserve announced a 25 basis point interest rate cut at its September FOMC meeting, lowering the federal funds rate to a range of 4.00%-4.25%. This move has been fully priced in by the market.
3: Fed Chairman Powell's post-meeting comments were less dovish than expected. He described the rate cut as a "risk management cut," with the market pricing in a 91% probability of a 25 basis point cut in October and nearly an 80% probability of another cut in December.
4: Geopolitical tensions provided safe-haven support for gold.
The escalating conflict between Russia and Ukraine, with Russian drones entering Polish airspace, heightened tensions in Europe. The escalating conflict in the Middle East, with Israel launching airstrikes on Qatar and the EU subsequently imposing sanctions on Israel, has exacerbated market uncertainty.
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Key Price Areas:
1: Key support below lies in the $3,650-3,662 range, Friday's correction low, which coincides with the 50-period simple moving average on the 4-hour chart.
2: Stronger support lies in the $3,630-3,640 area, which represents a short-term bottom. Multiple lower shadows suggest bullish entry on falling prices.
3: If this area is broken, the next key support level lies around $3,600-3,610.
Resistance Level Analysis:
1: Immediate resistance above lies in the $3,685-3,700 range, particularly the psychologically important $3,700 level.
2: If this area is broken, gold could re-challenge its all-time high of $3,707 or even reach $3,730.
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In terms of trading volume, gold trading volume increases during rising prices and decreases during falling prices, a characteristic of bull markets.
However, recent trading volume near all-time highs suggests a lack of sustained buying momentum, suggesting the market may need some time to consolidate and digest.
Monday Forecast
1: Highest Probability Scenario (60% probability)
Gold prices are likely to continue their high-volume trading pattern next Monday, trading between $3,650 and $3,700.
The logic behind this trend is that the market needs more time to digest the impact of the Federal Reserve's monetary policy while awaiting new data guidance.
Friday's gold close around $3,685 suggests that bulls still have a significant advantage.
In this scenario, gold prices may first test the lower support level of $3,660-3,665. If this support level holds, a rebound to the $3,685-3,700 range is possible.
Monday's Asian and European trading sessions are likely to be relatively quiet, while the US trading session could see significant volatility.
The trigger for this move could be further market interpretation of weekend speeches by Federal Reserve officials or expectations of geopolitical developments.
2: Low Probability Scenario (30% probability)
Gold prices break through the $3,700 resistance level and move upward to test the all-time high of $3,707, or even higher.
This scenario could be triggered by an unexpected escalation in geopolitical tensions over the weekend or by a market repricing of the Federal Reserve's monetary policy path, reinforcing expectations of further rate cuts this year.
If gold prices can sustain above $3,700, it could trigger short-covering and new long entries, further pushing gold prices higher.
The next target would be around $3,730, or even higher.
This trend would require support from positive news, particularly a pullback from the US dollar index's current highs.
3: Low Probability Scenario (10% Probability)
Gold prices fall below the $3,650 support level and test the key support level of $3,630-3,640.
This scenario could be triggered by a sustained strengthening US dollar, strong US economic data released before the market opens, or an unexpected easing of geopolitical risks, reducing safe-haven demand.
If gold prices fall below the $3,630-3,640 support area, they could fall further to the $3,600-3,610 range. However, the probability of this trend occurring is low, as the overall market environment remains favorable for gold, and the bullish trend remains unchanged.
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Trading Recommendations:
Trading Strategy: Generally, adopt a range-bound trading strategy. Consider establishing a position near support and reducing or taking profit near resistance.
Specifically, you can enter a long position in the 3655-3665 area, with a stop-loss below 3645 and a target between 3690-3700.
For aggressive traders, you can try a small short position in the 3685-3700 area, with a stop-loss above 3705 and a target between 3665-3675.
Gold Sets New Record: Buy or Sell Amid the Market Frenzy?Hello traders,
Last week, gold ended with an unexpected twist. Prices continued to climb on Friday (19/09), marking the 5th straight week of gains, reaching $3,683.24/oz, while futures advanced to $3,718.50/oz. This came right after the Fed cut interest rates—a move that was expected to “cool” gold. So, is this rally sustainable or just a trap?
Fundamental Analysis: Rate Cuts Fuel Gold’s Rise
After the Fed cut rates by 0.25%, the market saw chaotic trading, with gold hitting historic highs before a quick pullback. Still, the Fed’s message reinforced investor confidence in gold:
Lower holding costs: Reduced interest rates lower the opportunity cost of holding non-yielding gold.
Dovish Fed stance: Despite warning about persistent inflation, Minneapolis Fed President Neel Kashkari suggested job risks could lead to further cuts, raising expectations for looser policy.
Strong demand: Physical gold demand remains high. In India, prices hit a 10-month peak, while in China, discounts widened to a 5-year high, signaling robust demand despite rising prices.
Technical Analysis: Structure Break, Uptrend Resumes
By the weekend, gold broke through its downtrend line, confirming a structural shift and highlighting strong buying pressure. This suggests the bullish trend may continue.
Outlook: This week, focus remains on buying opportunities with short-term targets at $372x and $373x. However, caution is needed with upcoming macroeconomic events, which could trigger large liquidity zones and potential traps.
Sample Trading Strategies (strict risk management):
BUY SCALP: $3671–$3669 | SL: $3666 | TP: $3674–$3694
BUY ZONE: $3657–$3659 | SL: $3647 | TP: $3669–$3709
SELL SCALP: $3713–$3715 | SL: $3719 | TP: $3705–$3785
SELL ZONE: $3731–$3733 | SL: $3741 | TP: $3723–$3683
The market is heating up. Can gold smash through barriers to set fresh records? Share your thoughts below! 👇
USOIL (WTI Crude Oil) Intraday & Swing Outlook🛢️ USOIL (WTI Crude Oil) Forecast – Intraday & Swing Outlook 🚀📉
Asset Class: USOIL (SPOTCRUDE / WTI CASH)
Last Closing Price: $62.796
Date/Time: 20th Sept 2025 – 12:50 AM UTC+4
🔍 Market Context
Crude oil remains in a volatile zone as macro factors like OPEC+ policy, global demand recovery, and geopolitical risks continue to steer momentum. Traders must prepare for short squeezes, traps, and breakout plays this week.
📊 Technical Overview
Chart Theories Applied:
📈 Elliott Waves – corrective Phase B nearing end.
🔄 Wyckoff – signs of re-accumulation spotted.
🔺 Head & Shoulders (Inverse) – potential bullish reversal.
🔮 Gann Angles & Time Cycle – short-term resistance clustering near $64.50.
🛠️ Indicators
🔵 RSI (H1) → Neutral zone (48–52).
📏 VWAP Anchored → $62.20 (support pivot).
📉 EMA 20 / EMA 50 → Bullish cross on H4 confirmed.
🎯 Bollinger Bands → Expansion phase → Expect high volatility.
🕒 Timeframe Strategies
📌 Intraday (5M / 15M / 1H / 4H)
Buy Entry (Scalp): $62.20 – $62.50 🟢
TP1: $63.20 🎯
TP2: $63.85 🎯
SL: $61.80 ❌
Sell Entry (Scalp): $63.80 – $64.20 🔴
TP1: $63.00 🎯
TP2: $62.40 🎯
SL: $64.70 ❌
📌 Swing (Daily / Weekly)
Buy Zone: $61.50 – $62.00 🟢
Targets: $65.20 / $67.40 / $70.00 🎯
Stop Loss: $60.50 ❌
Sell Zone (Rejection): $67.40 – $68.00 🔴
Targets: $64.50 / $62.20 🎯
Stop Loss: $68.80 ❌
⚠️ Risk Management
Volatility expected due to Fed rate guidance & OPEC+ commentary.
Stick to 2–3% capital risk per trade.
Watch for bull/bear traps near breakout zones.
📌 Summary
Intraday: Range $62.20 – $64.20 ⚖️
Swing: Upside bias if $61.50 holds strong 💹
Key Resistance: $64.50 / $67.40
Key Support: $61.50 / $60.50
🔥 Bias: Short-term sideways → Medium-term bullish above $61.50.
For individuals seeking to enhance their trading abilities based on the analyses provided, I recommend exploring the mentoring program offered by Shunya Trade. (Website: shunya dot trade)
I would appreciate your feedback on this analysis, as it will serve as a valuable resource for future endeavors.
Sincerely,
Shunya.Trade
Website: shunya dot trade
XAUUSD 4H – Key Support Bounce for Swing LongGold is holding support near 3655, showing strength after recent pullbacks. Price action suggests buyers are defending this level, keeping the short-term uptrend intact.
key Levels:
Buy Entry: 3655
Stop Loss: 3625
Take Profit: 3690
Reasoning:
The setup is based on price respecting higher lows and consolidating above a support base. A bounce from 3655 indicates buyer control, with room for continuation toward 3690 if momentum sustains. Stop loss placement ensures protection against a breakdown.
Disclaimer: This analysis is for educational purposes only and not financial advice. Always manage your own risk before trading.
GOLD is BACK with a new potential move... so I m back to it tooCommodities have such a good time time this month. After a period of ranging and no specific direction, I secured over 9R in the last 21 days with a +8.85R on XAGUSD, a loss on XPTUSD, a BE on US2000, a +2.64R on COFFEE and another loss on JP225.
Gold Alert: The Bull Reigns Above 3612!
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🚨 Gold Alert: The Bull Reigns Above 3612! 🚨
Gold remains in a strong uptrend — and that momentum is intact as long as prices stay above 3612.
But beware: a break below 3612 flips the script. That’s not just a dip — it’s a golden opportunity to sell.
If that level cracks, we’ll be ready with a fresh analysis. Stay sharp. The next move could be decisive.
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XAG/SPX, Silver & Silvers Miners to outperform SPX equitiesSilver has broken out of a prolonged consolidation phase compared to the S&P 500, as evident in the ratio chart. Going forward, silver as well as silver miners are expected to outperform equities.
As highlighted in my previous posts, I pointed out the strong potential for silver miners and silver to deliver superior returns.
If you like this idea, please boost and share!
XAUUSD (GOLD) Forecast✨📊 XAUUSD (GOLD) Forecast – Intraday & Swing Outlook ✨💰
Asset Class: XAUUSD (GOLD CFD)
Closing Price: 3,685.11 📍 (20th Sept 2025, 12:50 AM UTC+4)
🔎 Multi-Lens Technical Analysis
🕯 Candlestick & Patterns
📉 Head & Shoulders → Watching neckline at 3,660
📈 Bull Trap/ Bear Trap → Possible fakeouts near 3,700 zone
🔄 Harmonics + Fibonacci → Reversal signals align around 3,640 – 3,650
🌊 Theories in Play
Elliott Waves → Wave 5 completion likely near 3,710 – 3,725
Wyckoff → Distribution phase signs visible 🔔
Gann → Time/price square shows resistance 3,720 – 3,730
Ichimoku → Cloud support at 3,655
📊 Indicators & Tools
RSI: 64 → Near overbought ⚠️
Bollinger Bands: Upper band at 3,710 = overextension risk
VWAP: Anchored VWAP support at 3,660
Moving Averages:
EMA20 (H1) = 3,662 ✅
Golden Cross intact (Bullish bias)
⏱ Trading Time Frames
Intraday Focus: 5m / 15m / 1H / 4H
Swing Focus: 4H / Daily / Weekly
🎯 Trading Strategy
Intraday Plan (Sept 20 – 23)
🟢 Buy Zone: 3,655 – 3,665 (Target: 3,690 – 3,705)
🔴 Sell Zone: 3,710 – 3,725 (Target: 3,670 – 3,650)
Swing Plan (Sept 20 – 27)
🟢 Swing Long Entry: 3,640 – 3,655 (Target: 3,720 – 3,745)
🔴 Swing Short Entry: 3,730 – 3,745 (Target: 3,660 – 3,640)
🌍 Market Context
📰 Fed policy & USD strength will remain key drivers
⚔️ Geopolitical tensions = higher volatility expected
🛡 Gold remains safe-haven bid during risk-off
✅ Conclusion
📊 Gold (XAUUSD) trades in critical resistance zone near 3,700.
Short-term bias → Bullish, but cautious of traps
Swing bias → Range-bound 3,640 – 3,745
🎯 Traders should buy dips & sell rallies within zones
⚡Stay sharp, manage risk! ⚡
For individuals seeking to enhance their trading abilities based on the analyses provided, I recommend exploring the mentoring program offered by Shunya Trade. (Website: shunya dot trade)
I would appreciate your feedback on this analysis, as it will serve as a valuable resource for future endeavors.
Sincerely,
Shunya.Trade
Website: shunya dot trade
⚠️Disclaimer: This post is intended solely for educational purposes and does not constitute investment advice, financial advice, or trading recommendations. The views expressed herein are derived from technical analysis and are shared for informational purposes only. The stock market inherently carries risks, including the potential for capital loss. Therefore, readers are strongly advised to exercise prudent judgment before making any investment decisions. We assume no liability for any actions taken based on this content. For personalized guidance, it is recommended to consult a certified financial advisor.
XAU? w4Sept
Hi.
15-16 Sept we had 2% run up
17-18 Sept wipe out most gains -1.8%
Friday +1.4%
What do you think next week?
I think will be a follow through.. making new highs.
Strategically thinking for buys.
Will need a bit reversal for ultimate entry.
(if we re lucky) ; if not.. it'll fly abv 3700 at open.
On the chart , level of discount,
AI buy
range 3768-70
TP 3702-05
We'll see Monday.
Good luck & all the best.
Not a guru
BTC1WEEKLY
PRICE: formation of a cup. Who will take us to our 4 objective. The price touches the current resistance zone, giving a valid argument for the bullish price movement. This weekly close will be important for the next movement before and after the halving. High volatility
124240 TARGET 4 cup and handle.
Weekly Market Review For GoldGold has recently been in a high-level consolidation phase. After a consecutive pullback on the daily chart, it turned bullish on Friday, indicating significant support at the lower end. The current key pivot levels lie at the resistance level around 3700 and the support level near 3620; the wide trading range has increased operational difficulty, requiring patience to wait for opportunities.
Technically, the 4-hour chart has broken above the short-term downtrend line, with the 3660 level shifting from resistance to a key support. The short-term trend leans bullish, so strategically, one can look to enter long positions within the 3650–3660 range when opportunities arise.
In the medium to long term, while the weekly chart deviates from the moving average and needs time for consolidation, the underlying logic of the fundamentals remains solid. Although the market has priced in the Fed’s first interest rate cut, the probability of further rate cuts in October and December remains high. The subsequent expectation-driven rally will continue to provide support for gold prices. With the core of the long-term uptrend support gradually moving higher, there are insufficient conditions for a sharp decline, and the overall trend will remain in a consolidative upward pattern.
CPI Data: The Silent Navigator of Currencies, CommoditiesChapter 1: Understanding CPI – The Pulse of Inflation
What is CPI?
The Consumer Price Index is a statistical measure that tracks changes in the price of a basket of goods and services consumed by households. This basket includes categories like:
Food and beverages
Housing and utilities
Transportation
Healthcare
Education
Recreation
Every month, agencies such as the U.S. Bureau of Labor Statistics (BLS), Eurostat, or India’s Ministry of Statistics and Programme Implementation (MoSPI) publish CPI data. Economists parse it to gauge how much everyday living costs have risen or fallen compared to a base year.
Why is CPI Important?
Central Banks: CPI determines whether interest rates should rise (to cool inflation) or fall (to stimulate growth).
Investors: CPI expectations guide bond yields, equity valuations, and commodity demand forecasts.
Governments: CPI affects wage negotiations, pensions, and social security adjustments.
Traders: Currency and commodity traders watch CPI closely for clues about future price movements.
Simply put, CPI is not just a statistical tool—it is the heartbeat of economic policy.
Chapter 2: CPI and Currencies – The Exchange Rate Compass
The Inflation-Interest Rate-Currency Triangle
Currency markets thrive on interest rate differentials between countries. And interest rates, in turn, are deeply tied to CPI. Here’s how the triangle works:
High CPI (Inflation Rising) → Central bank likely raises rates → Higher yields attract capital inflows → Currency strengthens.
Low CPI (Weak Inflation/Deflation) → Central bank cuts rates → Yields fall → Capital outflows → Currency weakens.
For example:
When U.S. CPI surges above expectations, markets anticipate the Federal Reserve will tighten monetary policy. This strengthens the U.S. dollar, often at the expense of emerging market currencies.
Conversely, when Japan’s CPI lingers near zero, it signals low inflation. The yen often weakens, especially if other countries raise rates.
CPI Surprises and Market Reactions
Currency traders pay close attention not just to CPI levels, but to surprises—the gap between expected and actual data.
A higher-than-expected CPI often sparks immediate dollar rallies.
A weaker-than-expected CPI can trigger sell-offs.
In short, CPI is the silent hand guiding daily forex volatility.
Chapter 3: CPI and Commodities – Pricing the Essentials
Inflation’s Direct Impact on Commodities
Commodities like oil, gold, copper, and wheat are real assets whose prices react strongly to inflationary signals.
Oil and Energy: Rising CPI often reflects higher energy costs. But paradoxically, higher inflation expectations can boost crude oil demand as traders hedge against future price surges.
Gold: Known as the “inflation hedge,” gold tends to rally when CPI rises sharply, as investors seek protection against currency depreciation.
Agricultural Commodities: Food inflation reflected in CPI often mirrors supply shocks in wheat, rice, or corn. Countries may adjust imports or exports based on these signals.
Feedback Loops
The relationship between CPI and commodities is not one-way. Commodities themselves often drive CPI readings. For instance:
A global spike in crude oil raises transportation and manufacturing costs, showing up as higher CPI.
Droughts that raise food prices also push CPI upward.
Thus, CPI is both a mirror (reflecting commodity movements) and a magnet (attracting speculative flows into commodities).
Chapter 4: CPI and Trade Routes – The Invisible Mapmaker
Inflation and Trade Balances
Inflation levels affect a country’s trade competitiveness:
High CPI → Domestic goods become expensive → Exports lose competitiveness → Imports rise → Trade deficits widen.
Low CPI → Domestic goods remain affordable → Exports rise → Trade surpluses build.
For example:
Persistent high inflation in Argentina has eroded its export competitiveness, forcing adjustments in trade partnerships.
Germany, historically with low inflation, often maintains strong export surpluses.
CPI as a Navigator of Trade Routes
Trade routes are not just about geography; they are shaped by economic viability. Inflation indirectly alters routes by shifting trade demand.
If Europe faces high inflation while Asia’s CPI remains controlled, Asian goods look cheaper. Shipping companies redirect routes toward Asian suppliers.
If U.S. inflation surges, import demand may weaken, leading to adjustments in trans-Pacific shipping volumes.
Case Study: Inflation and Shipping Costs
In 2021–2022, global CPI spikes—driven by energy and food—coincided with record-high shipping costs. As inflation rose, freight companies restructured routes to prioritize high-demand sectors, such as food imports over luxury goods. CPI data, therefore, indirectly reshaped trade flows.
Chapter 5: CPI, Central Banks, and Global Policy Coordination
CPI does not exist in isolation; it anchors monetary diplomacy across nations.
The U.S. Federal Reserve: Because the U.S. dollar underpins global trade, U.S. CPI announcements ripple worldwide. A high U.S. CPI forces the Fed to hike rates, strengthening the dollar and raising borrowing costs globally.
European Central Bank (ECB): CPI-driven policy changes affect the euro, which impacts intra-European trade flows.
Emerging Economies: Countries like India or Brazil often adjust subsidies, tariffs, or interest rates in response to CPI to safeguard trade competitiveness.
When multiple nations face similar CPI-driven pressures, we see global coordination (or conflict). For example, in the 1970s oil crisis, surging CPI forced many central banks to raise rates simultaneously, tightening global liquidity.
Chapter 6: CPI in Geopolitics and Economic Strategy
CPI as a Political Tool
Governments know voters feel inflation viscerally. CPI spikes often translate into political instability. Leaders facing high CPI tend to:
Subsidize imports of food or fuel.
Strengthen ties with low-cost trading partners.
Impose export bans to protect domestic consumers.
Thus, CPI can even redirect geopolitical alliances.
Inflation and Trade Wars
Persistent CPI pressures often trigger protectionist policies. For example:
High U.S. CPI has historically fueled tariff debates on Chinese imports.
Emerging nations with food inflation often restrict exports, reshaping global supply chains.
In this sense, CPI silently redraws maps of economic power.
Conclusion
The Consumer Price Index may look like a dry statistical release, but it is one of the most powerful silent forces shaping global finance and trade. From guiding central bank decisions to shifting the tides of forex markets, from influencing commodity hedging to redrawing shipping routes, CPI is everywhere.
It doesn’t shout like wars or pandemics, but whispers through spreadsheets and trading desks—subtly yet decisively navigating the economic world.
In an interconnected age, understanding CPI is not just for economists. Traders, policymakers, and businesses alike must treat it as the silent navigator that determines the currents of currencies, commodities, and trade routes.
XAU coverage Everything still remains from the last post of this instrument.
Only change here is a further target on T.P which I am confirming based on Fridays closure, we are now running for $3751 which is golds biggest handle to date!!!
Hurdle lays on $3713 which if gold takes out on closure, I will be looking at scaling in and should have no problem taking TP from there!
It’s been a roller coaster but a plans a plan when you have conviction!!!!
$3600 is the next play from that area and I think q4 can set the tone for a correction as I believe pricing as of recent is unnaturally extended!
Thank You 🫶🏽
Gold Under Pressure - Is the Downtrend Just Beginning?Hi everyone, it’s Ken!
On the 2H chart, after careful observation, we can see a RISING WEDGE pattern forming. After XAUUSD broke the previous uptrend and completed its correction phase, there's a high likelihood that a new bearish trend will emerge, continuing the short-term downtrend we've seen recently.
Ken's target is to push the price below 3,630, aiming for a further low at 3,608 – this level perfectly aligns with Fibonacci 1.618.
What about you? Do you think XAUUSD will continue to drop, or is there a chance for a reversal to the upside? Share your thoughts and targets in the comments!
Gold Faces Major Resistance: Is a Sharp Decline Imminent?Hey everyone, looking at XAUUSD today, I noticed something quite interesting. Gold has reached an important resistance level, one that in the past has acted as a strong barrier, pushing the price down. This area has also been a strong supply zone, where sellers have previously taken control of the market. Therefore, it becomes a "hot" spot for those looking for shorting opportunities.
If the price starts showing bearish signals, such as rejection wicks, bearish candlestick patterns, or signs of weakening buying pressure, I think there's a good chance we could see a drop towards 3,604, and possibly even lower to 3,5XX if the selling pressure remains strong. However, if the price breaks this resistance clearly, the bearish outlook might be invalidated, and we could see a further rally.
This is just my personal view on the support and resistance levels, not financial advice. Always double-check your signals and ensure proper risk management.
Good luck with your trades!
Gold Today: Continuation of the Uptrend or Entering a CorrectionHello everyone, in today’s session, gold experienced a significant pullback, dropping to 3,641 USD/ounce, a 31 USD decrease from the 3,672 USD/ounce high established yesterday. In the futures market, the December gold contract also saw a similar pressure, losing 45 USD and settling at 3,672 USD/ounce.
Reasons for the Decline:
The primary cause of the drop was the pressure from profit-taking after gold reached a 14-year high on 17th September. Additionally, the Federal Reserve’s decision to cut interest rates by 25 basis points, rather than the 50 basis points expected by some investors, disappointed the market and triggered a sell-off. Although the reduction was anticipated, the failure to meet expectations dampened market sentiment.
Furthermore, the recovery of the US Dollar in the previous session put additional pressure on the precious metal. As the greenback strengthened, gold became less attractive to investors holding other currencies, significantly weakening buying interest.
Short-Term Outlook:
Despite the pressure for a correction, the uptrend remains intact as long as the price stays above the important support level of 3,640 USD. As long as this level holds, gold could rebound and target 3,700 USD, potentially moving higher.
An important point to note is that the flow of funds continues to favour gold as a safe haven, despite the lukewarm reaction to the Fed’s decision. Coupled with global financial uncertainties, technical factors like FVG and strong trading volume reinforce the potential for a breakout if the price stabilizes above support.
Overall, with favourable macroeconomic conditions and the US Dollar stabilising, gold’s upside potential remains intact in the near term.
What’s your take on gold’s next move? Will it push through $3,700, or could we see another deeper correction? Share your thoughts below!