Gold staged a downward correction last week to start the week ( monday & tuesday) following news of israel delaying a ground assault to wait for additional American forces to the region & Hamas releasing 2 hostages. On wednesday; israeli prime minister said theyve increased air assaults in order to pave way for ground assaults which helped the safe haven metal gain bullish momentum.
US Yields remain elevated, suggesting that the dominant driver of gold is centered around its safe haven appeal. Price action has revealed a reluctance to trade higher than the $1985 level – evidenced by upper long wicks at each occasion prices traded above the level. This does not suggest that the precious metal will start selling off eventhough the nearterm outlook does suggest a bearish correction before the next leg up, even if the RSI has entered overbought territory as in times of uncertainty gold maintains the potential for further upside.
Quite a busy week on the economic calender with major news events due so expect volatility Wednesday onwards including the FED interest rates decision & NFP. If the FED confirms no additional tightening is required this year, USD could come under major bearish pressure. On the other hand if FED hints at another increase in December may still be on the table, XAUUSD may correct lower.
US Yields remain elevated, suggesting that the dominant driver of gold is centered around its safe haven appeal. Price action has revealed a reluctance to trade higher than the $1985 level – evidenced by upper long wicks at each occasion prices traded above the level. This does not suggest that the precious metal will start selling off eventhough the nearterm outlook does suggest a bearish correction before the next leg up, even if the RSI has entered overbought territory as in times of uncertainty gold maintains the potential for further upside.
Quite a busy week on the economic calender with major news events due so expect volatility Wednesday onwards including the FED interest rates decision & NFP. If the FED confirms no additional tightening is required this year, USD could come under major bearish pressure. On the other hand if FED hints at another increase in December may still be on the table, XAUUSD may correct lower.
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let 12 years of experience do the job for you, join the winning team!
t.me/FXSJGOLD
instagram: fxsjgold
Trading made stress free..
