The price of gold, currently at 1,907.94 in the XAUUSD market, is experiencing uncertain conditions as selling pressure intensifies and traders look for signs of the Federal Reserve showing a more aggressive stance.
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]
- Gold Price remains dicey as bears attack the key support while seeking confirmation of hawkish Fed bias.
Gold Price (XAU/USD) lacks clear directions even as bears keep the reins at the lowest levels in three months. That said, the metal’s latest inaction could be linked to the cautious mood ahead of the key US inflation clues, as well as amid mixed economics from China. Additionally, a lack of market participation amid the quarter-end positioning also seems to limit the XAU/USD moves of late.
The yellow metal dropped below the $1,900 threshold to refresh a 3.5-month low the previous day as US data bolstered the bets that the Fed will announce more rate hikes. On the same line were comments from Fed Chair Jerome Powell and Atlanta Federal Reserve President Raphael Bostic. It should be noted that the People’s Bank of China’s (PBoC) sustained defense of the Yuan, even at major costs, join the below 50.0 prints of the China PMI to also exert downside pressure on the Gold Price.
Elsewhere, firmer equities and Treasury bond yields allow traders to park their funds there and keep the XAU/USD bears hopeful.
Also read: Gold Price Forecast: XAU/USD rebound from under $1,900 offers hope for bulls
Our Technical Confluence Indicator signals that Gold price jostles with the key intraday resistance while grinding higher past short-term important support.
That said, the $1,910 level comprising Fibonacci 23.6% on one-day and the previous weekly low restricts immediate recovery of the Gold Price.
On the contrary, the lower band of the Bollinger on one-day, Fibonacci 61.8% on one-day and Pivot Point one-week S1 together restrict the XAU/USD downside near the $1,900 psychological magnet.
It’s worth observing that the Pivot Point one-month S1, around $1,905, offers immediate support to the Gold sellers.
In a case where the Gold Price rise past $1,910, a gradual run-up towards the Fibonacci 38.2% on one-week, near $1,930, and then to the previous monthly low of around $1,934 can’t be ruled out.
Meanwhile, a downside break of the $1,900 has almost clear road towards the south before hitting the Pivot Point one-day S2 near $1,886.
The TCD (Technical Confluences Detector) is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. If you are a short-term trader, you will find entry points for counter-trend strategies and hunt a few points at a time. If you are a medium-to-long-term trader, this tool will allow you to know in advance the price levels where a medium-to-long-term trend may stop and rest, where to unwind positions, or where to increase your position size.
[/s2If]
Nehcap Expert Advisor
The NEHCAP MT4 EA is high quality professional trading system geared to generate returns without using GRID or martingales. Each trade has strict risk per trade parameter. The pairs under management include EURUSD, GBPUSD, AUDCAD, AUDNZD,GBPAUD, EURAUD, EURCAD, CHFJPY and many more.
The system is trading live: LIVE ACCOUNT TRACKING
You can run it free. Apply for a free trial and track our account. Buy the system or use profit share mechanism to generate returns on your MT4.
Join Our Telegram Group
