Long expectations on XAUUSD throughout the next week
Bullish Gold rally throughout the last week with no major trend changes expected for the following one.
Even though the last week had a lack of big fundamental events that could possibly move the markets with huge volatility, the XAUUSD Price Action managed to make bullish upswing, trading approximately 17 points to the upper side (even testing the 1848 resistance on Thurday's EU market closing session).
What moved the Gold market mostly I believe were huge losses on US stocks (S&P, Nasdaq and Dow Jones) which could make this month the worst for previously mentioned stocks since the last great financial crisis (2008y). Gold also showed correalation with US10Y and USDJPY, which traded with losess throughout the last week. The US10Y are still trading on the 11 month high's and it is important to remember that last week's big upswing on Yields (US10Y) never applied to the Gold, as these two assets are usulay trading with inverse correlation. It is also worth noting that the Gold had no correlation with Dollar Index throughout the last week.
Regarding the key fundamental economic events for this week, all eyes will be on Wednesday's FOMC Statement and Fed Interest Rate Decision which is happening at 8 PM CET. Even though all the big investment Bank's predicted 3/4 intereset rate hikes throughout the Y2022, the Fed is still cautious regarding possible rate hikes and faster asset tappering, as economy still did not recover as expected (all the relevant reports for December's economy growth). Also, the huge debt of the US and missunderstanding of inflation, which is all except transitory, could possibly hit markets hard and even lead them to crashing.
The Gold Spot weekly's chart candle managed to break and close above the 1828,90 resistance, and last three times it happend (30th November 2020; 3rd May 2021 and 8th of November) the Price action had bullish upswing all the way to 1850,90 psychological barrier and even further. The same Price action movement is expected once again, as Gold usually repeats is cycles. The Fibbonaci retracement perfectly suits the support/resistance lines and I see no other pattern, but for Gold to trade within neutral rectangle till Thursdays FOMC meeting, which will most likely push DX and US10Y lower (as I do not expect interest rate hike and asset tappering any sooner than April). I will not engage my buying order until Wednesday's meeting, as Gold is pretty volatile for no major reasons at the moment (I will engage buying order only if meeting's statement meet my expectation or consider selling order if the 1805,90 support gets invalidet and broken).
Even though the last week had a lack of big fundamental events that could possibly move the markets with huge volatility, the XAUUSD Price Action managed to make bullish upswing, trading approximately 17 points to the upper side (even testing the 1848 resistance on Thurday's EU market closing session).
What moved the Gold market mostly I believe were huge losses on US stocks (S&P, Nasdaq and Dow Jones) which could make this month the worst for previously mentioned stocks since the last great financial crisis (2008y). Gold also showed correalation with US10Y and USDJPY, which traded with losess throughout the last week. The US10Y are still trading on the 11 month high's and it is important to remember that last week's big upswing on Yields (US10Y) never applied to the Gold, as these two assets are usulay trading with inverse correlation. It is also worth noting that the Gold had no correlation with Dollar Index throughout the last week.
Regarding the key fundamental economic events for this week, all eyes will be on Wednesday's FOMC Statement and Fed Interest Rate Decision which is happening at 8 PM CET. Even though all the big investment Bank's predicted 3/4 intereset rate hikes throughout the Y2022, the Fed is still cautious regarding possible rate hikes and faster asset tappering, as economy still did not recover as expected (all the relevant reports for December's economy growth). Also, the huge debt of the US and missunderstanding of inflation, which is all except transitory, could possibly hit markets hard and even lead them to crashing.
The Gold Spot weekly's chart candle managed to break and close above the 1828,90 resistance, and last three times it happend (30th November 2020; 3rd May 2021 and 8th of November) the Price action had bullish upswing all the way to 1850,90 psychological barrier and even further. The same Price action movement is expected once again, as Gold usually repeats is cycles. The Fibbonaci retracement perfectly suits the support/resistance lines and I see no other pattern, but for Gold to trade within neutral rectangle till Thursdays FOMC meeting, which will most likely push DX and US10Y lower (as I do not expect interest rate hike and asset tappering any sooner than April). I will not engage my buying order until Wednesday's meeting, as Gold is pretty volatile for no major reasons at the moment (I will engage buying order only if meeting's statement meet my expectation or consider selling order if the 1805,90 support gets invalidet and broken).
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