The uptrend has ended. Prosperity for sellers
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XAUUSD
gathered bullish momentum in the second half of the day on Friday and reached its highest level since early January above 2,070$. The benchmark 10-year US Treasury bond yield is down 1% at 4.2%, fueling
XAUUSD
rally ahead of the weekend.
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- From a technical perspective, the overnight breakout through the $2,040-2,042 horizontal resistance was seen as a fresh trigger for bullish traders. Moreover, oscillators on the daily chart have been gaining positive traction and support prospects for an extension of the recent goodish rebound from the YTD low, around the $1,984 region touched in February. Hence, a subsequent strength towards the next relevant hurdle near the $2,065 region, en route to the $2,100 round figure, looks like a distinct possibility.
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- On the flip side, weakness back below the $2,040-2,042 resistance-turned-support might now be seen as a buying opportunity and is more likely to find decent support near the $2,025-2,024 area, or the weekly low. This is followed by the 100-day Simple Moving Average (SMA), currently near the $2,014 region. This is followed by the $2,000 psychological mark, which if broken might shift the near-term bias in favour of bearish traders and drag the Gold price to the $1,984 support en route to the very important 200-day SMA, near the $1,969-1,968 zone.
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- Gold price (XAU/USD) ticks lower following an intraday uptick back closer to a one-month top touched the previous day and slides closer to the $2,042-2,040 resistance break point during the early European session on Friday. Growing acceptance that the Federal Reserve (Fed) will wait until the June policy meeting before lowering borrowing costs remains supportive of elevated US Treasury bond yields. This, along with the prevalent risk-on environment, turns out to be a key factor exerting some downward pressure on the non-yielding yellow metal.
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- The downside for the Gold price, meanwhile, seems cushioned in the wake of rising bets for an eventual rate cut by the Fed, bolstered by signs of easing inflation in the US. Nevertheless, the XAU/USD seems poised to post gains for the second straight week as investors look to key US macro data scheduled at the start of a new month, starting with the ISM Manufacturing PMI later today. Friday's US economic docket also features the revised Michigan Consumer Sentiment Index, which, along with Fed Speaks, should provide some impetus to the XAU/USD.
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- Please pay attention because tomorrow when the opening session takes place there will be GAP. Also pay attention to the resistance and important areas I have marked
🔴SELL Price range 2095$ - 2093$. Stoploss: 2099$
🟢BUY Price range 2064$ - 2066$. Stoploss: 2060$
Strong support: 2060$
Strong resistance: 2098$
Note: Full TP and SL to be safe and win the market‼️