XAUUSD: 1/3 Friday market analysis and strategy
Gold hit a one-month high of 2050 on Thursday and closed near 2044. U.S. inflation data was in line with expectations and the number of Americans filing for unemployment benefits increased slightly, providing upward momentum for international gold. Traders' attention turned to further comments from Federal Reserve officials for clues about a rate cut.
The latest data were in line with expectations after recent strong inflation data, which showed the U.S. personal consumption expenditures (PEC) price index rose 0.3% in January and the core PCE price index rose 0.4%, putting pressure on the dollar. This makes gold cheaper for investors holding other currencies.
At the same time, U.S. Treasury yields fell, increasing gold's appeal, and the market adjusted expectations for a June interest rate cut. Although gold has traditionally been considered an inflation hedge, higher interest rates to control price increases would discourage investment in gold because it does not pay interest.
Gold technical analysis
Daily resistance is 2053, lower support is 2015
Four-hour resistance 2053, lower support 2038-26
✅Gold operation suggestions:
Gold bulls ended the multi-day oscillation yesterday and finally ushered in its first breakthrough. After the bulls broke through 2040, they directly touched near 2050 and have been oscillating around 2040. From the current point of view, short-term gold price support focuses on the hourly neckline. It is near 2038. The upper pressure is focused on the vicinity of 2053. The short-term bullish strong dividing line has moved to 2038. The daily level has not broken through and stood above 2053. We cannot fully believe that the bulls will return. Let’s first look at the operation in the 2053-2038 range.
Pay attention to the dividing line between long and short in 2038
SELL:near 2053
SELL:near 2038
BUY:near 2038
Technical analysis only provides trading direction!
The latest data were in line with expectations after recent strong inflation data, which showed the U.S. personal consumption expenditures (PEC) price index rose 0.3% in January and the core PCE price index rose 0.4%, putting pressure on the dollar. This makes gold cheaper for investors holding other currencies.
At the same time, U.S. Treasury yields fell, increasing gold's appeal, and the market adjusted expectations for a June interest rate cut. Although gold has traditionally been considered an inflation hedge, higher interest rates to control price increases would discourage investment in gold because it does not pay interest.
Gold technical analysis
Daily resistance is 2053, lower support is 2015
Four-hour resistance 2053, lower support 2038-26
✅Gold operation suggestions:
Gold bulls ended the multi-day oscillation yesterday and finally ushered in its first breakthrough. After the bulls broke through 2040, they directly touched near 2050 and have been oscillating around 2040. From the current point of view, short-term gold price support focuses on the hourly neckline. It is near 2038. The upper pressure is focused on the vicinity of 2053. The short-term bullish strong dividing line has moved to 2038. The daily level has not broken through and stood above 2053. We cannot fully believe that the bulls will return. Let’s first look at the operation in the 2053-2038 range.
Pay attention to the dividing line between long and short in 2038
SELL:near 2053
SELL:near 2038
BUY:near 2038
Technical analysis only provides trading direction!
Trade active:
Now DXY is too weak and has been falling. After breaking through 2053, the upper side will see around 2062. Wait for the NY market to open. After falling, stay away from 2053 before you can go short.
Trade active:
waterfall
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