XAUUSD-Gold - Technical Analysis
The price of gold continues to drop below the psychological 2000 level and on Wednesday, during the Asian session, it hits a new two-month low. The Federal Reserve (Fed) may decide to hold off on decreasing interest rates until its June policy meeting, according to rumours stoked by a stronger-than-expected US inflation report released on Tuesday. This is one of the main factors supporting non-yielding bullion. A additional factor undermining the commodity appears to be the hawkish Fed views that continue to support rising US Treasury bond yields and help the US Dollar maintain its strong overnight gains to the highest level since November 14.
The US isn't expected to provide any significant economic data that could move markets on Wednesday, so the precious metal is left to rely on the USD and general risk sentiment. The Meanwhile fundamental backdrop seems tilted in favor of bearish traders.
Technically speaking, some follow-through selling below the 100-day SMA's range of 1990 to 1988 could reveal the crucial 200-day SMA support, which is now located close to the 1965 region. A strong breach below the latter will be interpreted by bearish traders as a new set-up for a further near-term decline. After that, the price of gold may drop to an intermediate support in the 1952-1950 range, and then it may drop to the bottom of November 2023, which is likely to be in the 1932-1931 range.
Alternatively, it appears that any effort at a rebound above 2000 will face strong opposition in the 2011-2012 region. However, some further buying that pushes the price of gold above 2015 and prompts a short-covering rebound might push the metal to the 50-day SMA, which is presently around 2030. If the latter is convincingly crossed, it should serve as a crucial turning point that opens the door for further gains past the 2044–2045 intermediate barrier and into the 2065 supply zone.
Frankly speaking right now there are minimum chances that it can retest 2030 in this week but if we see the gold movement then nothing is impossible.
Most Watchable areas:
1990 to 1988 for downward movement
2011-2012 for upward movement
Note
Please never follow anyone blindly and always remember following key points:
1- First and Last thing in trading is patience.
2- Risk management in trading is a Key so use your money accordingly.
3- Please Don't think I'm always right. I could be wrong, same as every other trader.
4- I always posted my thoughts, not financial advice.
5- Please use your mind and try to get knowledge about market. It will help you in future
Thank you and Good Luck!
The US isn't expected to provide any significant economic data that could move markets on Wednesday, so the precious metal is left to rely on the USD and general risk sentiment. The Meanwhile fundamental backdrop seems tilted in favor of bearish traders.
Technically speaking, some follow-through selling below the 100-day SMA's range of 1990 to 1988 could reveal the crucial 200-day SMA support, which is now located close to the 1965 region. A strong breach below the latter will be interpreted by bearish traders as a new set-up for a further near-term decline. After that, the price of gold may drop to an intermediate support in the 1952-1950 range, and then it may drop to the bottom of November 2023, which is likely to be in the 1932-1931 range.
Alternatively, it appears that any effort at a rebound above 2000 will face strong opposition in the 2011-2012 region. However, some further buying that pushes the price of gold above 2015 and prompts a short-covering rebound might push the metal to the 50-day SMA, which is presently around 2030. If the latter is convincingly crossed, it should serve as a crucial turning point that opens the door for further gains past the 2044–2045 intermediate barrier and into the 2065 supply zone.
Frankly speaking right now there are minimum chances that it can retest 2030 in this week but if we see the gold movement then nothing is impossible.
Most Watchable areas:
1990 to 1988 for downward movement
2011-2012 for upward movement
Note
Please never follow anyone blindly and always remember following key points:
1- First and Last thing in trading is patience.
2- Risk management in trading is a Key so use your money accordingly.
3- Please Don't think I'm always right. I could be wrong, same as every other trader.
4- I always posted my thoughts, not financial advice.
5- Please use your mind and try to get knowledge about market. It will help you in future
Thank you and Good Luck!
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