"Following a decline from the robust gains observed in the European session, Gold prices neared stabilization during Tuesday's New York session. However, during Wednesday's trading, bullish momentum resurged, yet remained within the confines of the narrow trading range seen in the European session, with prices staying below the threshold of US$2,200."
Fundamental Analysis:
Overnight trading in the New York session saw gold prices receiving support from a weakened U.S. Dollar Index (USDX) and a decline in U.S. Treasury Securities yields. However, as the trading day progressed, a rebound in the USDX led to profit-taking pressure from investors, resulting in April gold futures closing down by US$0.80 to US$21,750.
In Wednesday's trading, bullish sentiment made a resurgence within a narrow trading range during the European session. This resurgence was primarily fueled by investors' expectations of an interest rate cut by the Federal Reserve at the upcoming June meeting. These expectations, coupled with projections of two more rate cuts before year-end, have increased the attractiveness of gold as an investment.
From a technical standpoint, April gold futures maintain a solid near-term technical advantage, with a five-week uptrend evident on the 1D technical chart. Bulls are eyeing the next upside target, aiming for a closing price breakthrough above solid resistance to achieve a new all-time high of US$2,222.
Conversely, bears are targeting a near-term downside, aiming to push futures below the solid technical support level of US$2,149.
Short-term resistance levels are identified at the overnight high of US$2,200 and the all-time high of US$2,222, while initial support levels are at this week's low of US$2,163 and last Friday's low of US$2,157.
Technical Analysis:
The gold price trend has been evolving within a major uptrend phase since the low of US$1,615 on September 28, 2022, supported by an equal-ratio uptrend trajectory. Traditionally, highly liquid tradable prices fluctuate higher within such trend phases, rather than moving vertically up or down.
In the short term, gold prices are undergoing a correction phase following a rapid ascent from February 23 to March 8. Despite this correction, bears have failed to gain traction over the past week, indicating ongoing upward momentum. This suggests that a significant top is not yet imminent, with potential for further upward movement.
Presently, XAUUSD is retracing yesterday's decline following a surge, with short- to long-term Simple Moving Averages (SMAs) all trending upwards, indicating sustained optimism for near-term demand.
Upon breaching the US$2,222 resistance level, gold may encounter further resistance around US$2,250, aligning with the 161.8% Fibonacci extension. On the downside, the December 4 high of US$2,145 is anticipated to provide support for gold bulls.
Trading Recommendations:
- **Trading Direction:** Long
- **Entry Price:** 2181
- **Target Price:** 2300
- **Stop Loss:** 2138
- **Deadline:** 2024-04-10 23:55:00
- **Support Levels:** 2180, 2175, 2171
- **Resistance Levels:** 2200, 2212, 2222
These recommendations are based on the technical analysis indicating the continuation of the upward trend, with specific entry and exit points to optimize trading strategies.
Fundamental Analysis:
Overnight trading in the New York session saw gold prices receiving support from a weakened U.S. Dollar Index (USDX) and a decline in U.S. Treasury Securities yields. However, as the trading day progressed, a rebound in the USDX led to profit-taking pressure from investors, resulting in April gold futures closing down by US$0.80 to US$21,750.
In Wednesday's trading, bullish sentiment made a resurgence within a narrow trading range during the European session. This resurgence was primarily fueled by investors' expectations of an interest rate cut by the Federal Reserve at the upcoming June meeting. These expectations, coupled with projections of two more rate cuts before year-end, have increased the attractiveness of gold as an investment.
From a technical standpoint, April gold futures maintain a solid near-term technical advantage, with a five-week uptrend evident on the 1D technical chart. Bulls are eyeing the next upside target, aiming for a closing price breakthrough above solid resistance to achieve a new all-time high of US$2,222.
Conversely, bears are targeting a near-term downside, aiming to push futures below the solid technical support level of US$2,149.
Short-term resistance levels are identified at the overnight high of US$2,200 and the all-time high of US$2,222, while initial support levels are at this week's low of US$2,163 and last Friday's low of US$2,157.
Technical Analysis:
The gold price trend has been evolving within a major uptrend phase since the low of US$1,615 on September 28, 2022, supported by an equal-ratio uptrend trajectory. Traditionally, highly liquid tradable prices fluctuate higher within such trend phases, rather than moving vertically up or down.
In the short term, gold prices are undergoing a correction phase following a rapid ascent from February 23 to March 8. Despite this correction, bears have failed to gain traction over the past week, indicating ongoing upward momentum. This suggests that a significant top is not yet imminent, with potential for further upward movement.
Presently, XAUUSD is retracing yesterday's decline following a surge, with short- to long-term Simple Moving Averages (SMAs) all trending upwards, indicating sustained optimism for near-term demand.
Upon breaching the US$2,222 resistance level, gold may encounter further resistance around US$2,250, aligning with the 161.8% Fibonacci extension. On the downside, the December 4 high of US$2,145 is anticipated to provide support for gold bulls.
Trading Recommendations:
- **Trading Direction:** Long
- **Entry Price:** 2181
- **Target Price:** 2300
- **Stop Loss:** 2138
- **Deadline:** 2024-04-10 23:55:00
- **Support Levels:** 2180, 2175, 2171
- **Resistance Levels:** 2200, 2212, 2222
These recommendations are based on the technical analysis indicating the continuation of the upward trend, with specific entry and exit points to optimize trading strategies.
Trade active:
TP Done
Trade closed: target reached:
1400 pips secured!
Trade closed: stop reached
Trade Still Running with total 778 Pips :)