Shinobi - XAUUSD: Possibility of returning 1900
World gold price continued to decline 11 USD/ounce, down to 1,924 USD. Precious metals fell as the USD index rose sharply and Treasury bonds increased to 4.2%, in addition to investors selling gold. The world's largest gold investment fund SPDR sold 1.16 tons, holding gold down to 889.81 tons.
China reported some less-than-optimistic economic data. Its Caixin Services Purchasing Managers' Index (PMI) came in at 51.8 in August compared with 54.1 in July and below expectations of 53.5. The Caixin Composite PMI was 51.7 versus 51.9 in July. China's recent weaker economic data showed less demand for raw commodities, including precious metals.
The factor holding back gold's decline is traders' expectations of interest rate increases by the US Federal Reserve (Fed). According to the FedWatch tool, there is a 95% chance that the Fed will keep interest rates unchanged in its policy meeting on September 19 and 20 and a 60% chance that interest rates will remain at current levels for the rest of the year. Some experts' forecasts suggest that gold will likely drop to 1,900 USD/ounce before rising higher.
XAUUSD
SELL LIMIT 1928 - 1930
TP1: 1924
TP2: 1920
SL: 1935
China reported some less-than-optimistic economic data. Its Caixin Services Purchasing Managers' Index (PMI) came in at 51.8 in August compared with 54.1 in July and below expectations of 53.5. The Caixin Composite PMI was 51.7 versus 51.9 in July. China's recent weaker economic data showed less demand for raw commodities, including precious metals.
The factor holding back gold's decline is traders' expectations of interest rate increases by the US Federal Reserve (Fed). According to the FedWatch tool, there is a 95% chance that the Fed will keep interest rates unchanged in its policy meeting on September 19 and 20 and a 60% chance that interest rates will remain at current levels for the rest of the year. Some experts' forecasts suggest that gold will likely drop to 1,900 USD/ounce before rising higher.
XAUUSD
SELL LIMIT 1928 - 1930 TP1: 1924
TP2: 1920
SL: 1935
Comment:
On Wednesday, gold declined to its lowest level in one week, extending its losses after registering its most significant intraday drop in a month during the previous session. This drop was attributed to the rise in U.S. Treasury yields and the strengthening of the dollar, driven by the anticipation of continued high interest rates.
Comment:
Entry SELL
Comment:
Running +20pips
Comment:
HIT TP1 . +40PIPS
Comment:
Edward Moya, senior market analyst at OANDA, said: “Global bond yields are surging and there seem to be concerns that global growth concerns could get even worse and that That gets people back to the dollar.”
Comment:
However, looking over the long term, the expert said, the story of slowing global growth will ultimately benefit gold and that will only happen when the market becomes more skeptical about downside risks. US economic downturn.
Comment:
The world gold price continued to decline when subjected to technical selling in the context that gold lacked supporting factors. In the early morning, the USD and bond yields continued to increase, putting pressure on gold.
Comment:
Despite signs that conditions in the US labor market are easing, the Federal Reserve (Fed) is expected to keep interest rates high for an extended period. Current market developments also include the possibility of a 25 basis point increase by year-end. This, in turn, maintains US Treasury yields high, which in turn supports the US Dollar causing gold to move in the opposite direction.
