The Middle East is hot again, GOLD skyrocketed

XAUUSD jumped as weak US initial jobless claims data and dovish comments from Federal Reserve officials weighed on the US dollar, along with tensions. New tensions in the Middle East attract risk haven demand.

Data released by the United States on Thursday showed that the number of people applying for unemployment benefits increased by 22,000 in the week of May 4 to 231,000, the highest level since late August last year and higher than US expectations. economists are 215,000.
The number of applications for unemployment benefits in the US is higher than expected and previous reports, showing that the economy is losing momentum. This could influence the Fed's future monetary policy decisions as they acknowledge that they are focused on a dual mandate (full employment and inflation.)

San Francisco Fed President Daly said Thursday that the Fed would consider cutting interest rates if the job market worsens. Interest rates are currently holding back the economy, but it may take "longer time" to bring inflation back to target.

Israel said on May 9 that ceasefire negotiations in the Gaza Strip in the Egyptian capital Cairo had broken down and the Israeli army would continue to attack in the city of Rafah, southern Gaza Strip. Israeli officials also said the Israeli delegation left Cairo that day.

According to reports from Egypt's Cairo News TV channel on May 9, negotiators from Hamas, Israel, Qatar and the US left Egypt that day after ceasefire negotiations in Gaza entered into. deadlock.
According to a Reuters report on May 8, Hamas said on May 8 that it was not willing to make further concessions to Israel in ceasefire negotiations in Gaza.
On May 8, Israel continued to use tanks and warplanes to attack the city of Rafah in southern Gaza, and threatened to launch a large-scale attack on this city. . Their troops entered the city through the Rafah border crossing with Egypt on the 7th, cutting off vital aid channels and the only exit for evacuating the wounded.

In general, the fundamental picture is leaning towards the possibility of more support for gold prices, especially as the geopolitical situation has new escalation points. This causes shelter demand to cover the market and in all cases of widespread risk, gold is always chosen as the top shelter asset.

Analysis of technical prospects for XAUUSD
After a long period of accumulation, the gold price finally broke the accumulation triangle in yesterday's trading session, and it is worth noting that gold brought price activity back above the EMA21 level.

In the short term, gold is still technically limited by the upper edge of the price channel and this is also the closest current resistance, noted at 2,366 USD. In case the price channel is broken, gold is eligible to continue to increase even more with the highest level at the all-time peak of 2,430 USD.

Since the resistance at the upper channel edge is the most notable technical level currently, open short positions should be protected once this level is broken. On the other hand, if gold remains within the price channel, it is still likely to retest the $2,330 technical level in the short term.

During the day, gold price is still in the downtrend price channel and technical levels will be noticed again as follows.
Support: 2,330USD
Resistance: 2,366USD

🪙SELL XAUUSD | 2366 - 2364

⚰️SL: 2370

⬆️TP1: 2359
⬆️TP2: 2354

🪙BUY XAUUSD | 2317 - 2319

⚰️SL: 2313

⬆️TP1: 2324
⬆️TP2: 2329

Trade active:

Plan BUY Running + 20pips💸

Comment:

The Israeli Army: We decided to return to work in Jabalia, north of Gaza, and evacuate the residents after Hamas attempts to restore its capabilities there.

Comment:

Comment:

The global dollar system works best when dollars are abundant, when US interest rates are low and other currencies are rising. Easy access to the dollar boosts economic activity around the world. Currently, we are in the opposite situation. The positive recovery of the US economy has forced the Fed to raise interest rates, pushing the dollar higher and putting a strain on dollar-based business around the world.

Comment:

Gold falls below $2,342

After rising to $2,348 at the beginning of the US session, gold is currently correcting back to nearly $2,341.

Fed Board of Governors member Jefferson continued to repeat the argument that the economy is still in a good position, and clear evidence is needed that inflation is falling sustainably toward the 2% target level to cut interest rates.

The focus this week is US CPI data for April

Comment:

Gold recovered to above $2,343 during the Asian session

After falling to nearly $2,336 during yesterday's US session following the announcement of the New York Fed's inflation expectations, gold is now up nearly $10 back to $2,343.

Comment:

🟡Gold futures rose during the Asian session

Gold futures rose during the Asian session on Tuesday.

According to the New York Mercantile Exchange's COMEX classification, June gold futures were trading at USD2,349.35 per ounce at the time of writing, up 0.27%.

It was previously trading at a high of USD2,350.50 per ounce. Gold may find support points at USD2312.90 and resistance at USD2385.30.

Comment:

Fed Chairman Powell reiterated the Fed has the ability to keep interest rates higher for longer

+++ Officials should be patient and let the restrictive policy work

+++ Lack of progress on inflation in the first quarter

Comment:

Gold prices touched $2,359 on Tuesday after data released by the US Department of Labor revealed that inflation rose above estimates. However, US government bond yields are sliding, an obstacle for the greenback.