Is the XAUUSD bearish strategy still a priority?
Hello dear traders!
Today, gold prices are fluctuating around 2305 USD after retreating under profit-taking pressure from 2400 USD, marking a decrease of 100 USD since it plunged.
Regarding international market information:
- The precious metals correction was underpinned by investors remaining optimistic amid hopes that the Iran-Israel conflict will not escalate further.
-This, along with expectations that the Federal Reserve (Fed) might delay interest rate cuts, turned out to be the main factor reducing demand for the non-yielding yellow metal.
Meanwhile, hawkish Fed expectations still favor higher US Treasury yields and allowed the US Dollar (USD) to stand near its highest level since November touched last week. This further contributes to the general sentiment surrounding Gold prices, although speculation that major central banks will cut interest rates this year may help limit deeper losses.
Look forward:
- Traders may also want to wait for the US Q1 GDP and Personal Consumption Expenditures (PCE) Price Index releases this week before placing bets in new direction.
Technically and fundamentally:
-Gold continues to be reinforced by profit-taking selling pressure at 2400 USD, EMA 34.89 shows the possibility of further price decline.
-Currently gold is operating near resistance at $2325, with immediate daily support at $2300. A break above the $2,300 support level would open the door for the precious metal to decline to lower levels at $2,278 and $2,220 as seen on the 4-hour chart.
Today, gold prices are fluctuating around 2305 USD after retreating under profit-taking pressure from 2400 USD, marking a decrease of 100 USD since it plunged.
Regarding international market information:
- The precious metals correction was underpinned by investors remaining optimistic amid hopes that the Iran-Israel conflict will not escalate further.
-This, along with expectations that the Federal Reserve (Fed) might delay interest rate cuts, turned out to be the main factor reducing demand for the non-yielding yellow metal.
Meanwhile, hawkish Fed expectations still favor higher US Treasury yields and allowed the US Dollar (USD) to stand near its highest level since November touched last week. This further contributes to the general sentiment surrounding Gold prices, although speculation that major central banks will cut interest rates this year may help limit deeper losses.
Look forward:
- Traders may also want to wait for the US Q1 GDP and Personal Consumption Expenditures (PCE) Price Index releases this week before placing bets in new direction.
Technically and fundamentally:
-Gold continues to be reinforced by profit-taking selling pressure at 2400 USD, EMA 34.89 shows the possibility of further price decline.
-Currently gold is operating near resistance at $2325, with immediate daily support at $2300. A break above the $2,300 support level would open the door for the precious metal to decline to lower levels at $2,278 and $2,220 as seen on the 4-hour chart.
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