XAUUSD | GOLDSPOT | New perspective | follow-up details

Gold continues its upward trajectory, achieving its highest monthly close in November and nearing record highs. Federal Reserve Chair Jerome Powell, while acknowledging soft inflation, emphasized that core inflation remains high. As US Treasury bond yields decline, providing a tailwind for Gold, the market anticipates potential Fed rate cuts, with about 135 basis points expected by the end of 2024. As we look ahead to the coming week, how will these factors and upcoming high-impact events from the US shape market dynamics?

XAUUSD Technical Analysis:
In this video, we dissected the XAUUSD chart from a technical standpoint, analyzed the key levels, analyzed historical price moves, market behaviors, and buyer-seller dynamics, and uncovered potential trading opportunities.

The $2,078 zone will be our center stage for this week. Its historical significance makes it a crucial point. If the bullish momentum is sustained then the breakout/retest of this zone will serve as a platform for new highs. However, if selling pressure continues to persist below the zone, we could witness renewed selling pressure back into the demand zone at the $2,050 zone.

Dive into the latest Gold market dynamics! Stay informed for strategic investment decisions.
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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.

Comment:

Against a backdrop of heightened expectations for a Federal Reserve rate cut and escalating geopolitical tensions involving the Yemeni Houthis/the US and Hamas/Israel, gold prices experienced a remarkable surge. This rally propelled the price of gold to a new all-time high, reaching approximately $2,143 during the Asian trading session.

However, a minor uptick in US Treasury bond yields contributed to the US Dollar gaining traction, prompting some investors to take profits. This resulted in a notable downturn in prices, as depicted on the chart. Concurrently, the ongoing tensions in the Middle East and concerns about a respiratory illness outbreak in China have sustained interest in safe-haven assets like gold.

Presently, the price action finds itself within a wide range, as indicated on the chart. Specifically, it is trading around the support line of this range, aligning with the key level at $2,078 for the week. At this juncture, we will exercise patience to gauge the market's response to this zone. This observation will guide decisions regarding potential new trading opportunities.

Good Morning

Trade active:

#XAUUSD

Two sell positions triggered at the breakdown of both the 2,072 and 2,050 levels with a total of over 450 pips in profit; protect all positions now as we look out for more trading opportunities.

Trade active:

Gold experienced a notable intraday reversal, pulling back about $125 from the recent all-time high near $2,143. The retreat found support around $2,020 amid indications that U.S. interest rates may have peaked. With dovish Fed expectations and subdued U.S. Treasury bond yields, the U.S. Dollar's rally faltered, potentially bolstering safe-haven assets like Gold. Currently, gold prices remain below the 2,035 level, and all sell positions from yesterday should be protected. However, it is worth noting that key players might prefer to wait on the sidelines at this juncture for the release of the key US macroeconomic features before making any aggressive bets. As such, we will wait for a significant trading set-up before making any fresh directional bets.

Good Morning

Trade active:

#XAUUSD

Just as discussed during our live session this morning, another sell position is triggered at the breakdown of the 2,030 level. Protect positions as we look out for more trading opportunities.

Trade active:

Surpassing expectations, the ISM Service PMI data provides a positive boost to the US Dollar for now. As the breakdown of the 2,020 level triggers another sell position, prioritize protecting existing positions while remaining vigilant for more trading opportunities.

Trade active:

UPDATE

Trade active:

All sell positions successfully closed, securing a minimum of 650 pips as buying pressure becomes evident. Gold appears to find support near the 2,020 zone, with sellers pausing after this week's upward movement, anticipating today's economic release. Focus now shifts to the US ADP Employment Change data, providing insights into the labor market ahead of Friday's crucial Nonfarm Payrolls report. Our guide for today's trading activity will be the newly identified descending trendline.

Good Morning

Comment:

#XAUUSD

UPDATE

Trade active:

UPDATE

Buy position triggered

Trade active:

Our buy position from yesterday remains active, with the Gold price staying within a narrow trading range over the past 24 hours. This indicates a high level of uncertainty that has gripped market sentiment as buyers opt to wait on the sidelines in anticipation of the US NFP report. The prevailing softer risk tone and expectations for a Fed rate cut in March 2024 continue to provide support.

Furthermore, the weaker JOLTS Job Openings data and a softer ADP report from the US yesterday indicate a slowdown in the US job market. This has sparked concerns about a potential economic downturn in the US, further bolstering the appeal for safe-haven assets like Gold. Given these factors, we maintain a bullish bias, and our trading decisions for today will be guided by the current market structure on the chart.

Good Morning.

Trade active:

UPDATE

Protect all positions as we look out for more trading opportunities.

Trade active:

UPDATE

Trade closed manually:

All buy positions closed by selling pressure as we anticipate re-entry with levels on the chart remains as our guiding light for entries.

Trade active:

The buy position re-entered yesterday remains intact as the price of Gold continues to struggle to make any significant headway during the Asian session. A resurgence in US bond yields has once again bolstered demand for the US Dollar, holding back any substantial gains ahead of the NFP release. Despite this, trading activities have managed to stay in positive territory for the third consecutive day, reflecting the growing belief that the Federal Reserve has concluded its policy-tightening campaign.

However, it seems that buyers are awaiting the release of the highly anticipated US Nonfarm Payrolls report, hoping for indications of a weaker labor market. Such a scenario would increase the likelihood of a rate cut by the Fed and could provide positive momentum for Gold. Our trading activities will be guided by the ascending trendline.

Good Morning.

Trade active:

#XAUUSD

Two sell position triggered; protect positions.

Happy weekend to every one!