Gold technical analysis XAUUSD / Gold
Gold has rallied steadily of late as the market discounted most expected rate cuts and converged on the Federal Reserve's forecast of three rate cuts this year. We are now in balance, so the next few weeks of data will be very important for market direction. Hot economic data may even prompt the market to price in the rest of the rate cuts that will lift Treasury yields and the US dollar, ultimately weighing on gold. Conversely, if the data starts to deteriorate, the market will resume prices with further rate cuts, sending gold to new highs.
Stay with us in the rest of the video with gold analysis
daily chart,
We can see that gold is approaching a key trend line around the 2050 level. This is where we can expect sellers to step in with a defined risk above the trend line to position for a drop to new lows. On the other hand, buyers want to see the price higher to extend bullish bets to the 2080 resistance.
4 hour chart,
We see that the price recently broke through the 2032 resistance but eventually bounced back from the 2015 support and made new highs. We got a retracement turned resistance now where we can find the 38.2% Fibonacci retracement level for a crossover. This is where buyers stepped in to target a downtrend development. On the other hand, sellers want to see the price break below the support level in order to position themselves for a drop in the uptrend line and target a break below it.
1 hour chart,
We can see the recent price action more closely with the price bounce at the 2032 support and the 21 red moving average. If we enter the extension from here, the trend line may diverge with the MACD, making things more interesting as the data will be the ultimate catalyst for a big move on either side.
Gold has rallied steadily of late as the market discounted most expected rate cuts and converged on the Federal Reserve's forecast of three rate cuts this year. We are now in balance, so the next few weeks of data will be very important for market direction. Hot economic data may even prompt the market to price in the rest of the rate cuts that will lift Treasury yields and the US dollar, ultimately weighing on gold. Conversely, if the data starts to deteriorate, the market will resume prices with further rate cuts, sending gold to new highs.
Stay with us in the rest of the video with gold analysis
daily chart,
We can see that gold is approaching a key trend line around the 2050 level. This is where we can expect sellers to step in with a defined risk above the trend line to position for a drop to new lows. On the other hand, buyers want to see the price higher to extend bullish bets to the 2080 resistance.
4 hour chart,
We see that the price recently broke through the 2032 resistance but eventually bounced back from the 2015 support and made new highs. We got a retracement turned resistance now where we can find the 38.2% Fibonacci retracement level for a crossover. This is where buyers stepped in to target a downtrend development. On the other hand, sellers want to see the price break below the support level in order to position themselves for a drop in the uptrend line and target a break below it.
1 hour chart,
We can see the recent price action more closely with the price bounce at the 2032 support and the 21 red moving average. If we enter the extension from here, the trend line may diverge with the MACD, making things more interesting as the data will be the ultimate catalyst for a big move on either side.