GOLD continues to set records, market awaits Powell's speechIn the Asian trading session on the morning of September 23, the spot OANDA:XAUUSD price fluctuated around 3,745 USD/ounce, after just setting a new record. Previously, in the first session of the week (September 22), gold increased sharply by 62.23 USD (equivalent to 1.7%), closing at 3,746.63 USD/ounce and on this trading day, it jumped to 3,759.29 USD/ounce, the highest level in history.
OANDA:XAUUSD was supported by expectations that the US Federal Reserve would continue to cut interest rates. Low interest rates are generally beneficial for the precious metal because they do not yield. Despite being considered “overbought”, gold has yet to show any signs of technical weakness.
Last week, Fed Chairman Jerome Powell “poured cold water” on expectations of too-fast policy easing after the Fed cut interest rates. However, the move did not stop money from pouring into gold ETFs, with holdings rising the most in more than three years.
This week, global investors are focused on a series of speeches from Fed officials, especially Mr. Powell's public speech on Tuesday afternoon (US time). According to the schedule, he will attend the "Economic Outlook Lunch" event in Rhode Island on September 24, where he will dialogue with more than 500 business and civil leaders. This is considered an opportunity for the market to grasp more about the upcoming monetary policy direction from the Fed.
Technical analysis of OANDA:XAUUSD outlook
Main Trend
Gold is in a steep uptrend channel, showing strong momentum.
The most recent candles are all sticking to the channel line and above the MA line, showing that the uptrend is still maintained.
Support and Resistance zones
Important support: 3,707 USD and 3,673 USD/ounce (Two green lines on the chart). This is the zone where if the price corrects, it is likely to bounce back.
Nearest resistance: 3,779 USD (Fibonacci level 0.382). If broken, gold can head towards: 3,825 USD (Fib 0.5), 3,872 USD (Fib 0.618), further: 3,938 USD (Fib 0.786).
Technical indicators
RSI: is in the high zone (above 70, signaling “overbought”), but has not given a strong reversal signal → indicating that the market still has upward momentum.
MA: moving average is sloping up, price is much higher than MA → strengthening the uptrend.
Trend analysis
Gold may have some short-term corrections to “gain momentum” around the $3,707 – $3,673 range, but the medium-term trend remains bullish. If the price channel is maintained and the support zone is not breached, there is a high possibility that gold will conquer the $3,779 → $3,825 → $3,872 range in the near future.
SELL XAUUSD PRICE 3789 - 3787⚡️
↠↠ Stop Loss 3793
→Take Profit 1 3781
↨
→Take Profit 2 3775
BUY XAUUSD PRICE 3726 - 3728⚡️
↠↠ Stop Loss 3722
→Take Profit 1 3734
↨
→Take Profit 2 3740
