Share:

Gold prices are on a consecutive three-day rise, reaching $1930.00 per Troy ounce as of Monday. The upward trend seems to be fueled by investors seeking a hedge against uncertainties ahead of key events this week.

Investors are keenly awaiting the U.S. Federal Reserve's decision, which is widely expected to maintain the interest rate at 5.5% per annum. The primary focus will likely be on the Fed's outlook on the economy and inflation, which should provide valuable insights into the regulator's future course of action.

Additionally, the Bank of England and the Bank of Japan are set to hold their meetings this week, while the Reserve Bank of Australia (RBA) will release the minutes from its previous meeting.

Another contributing factor to gold's demand is the sudden depreciation in the yuan exchange rate, making the precious metal more attractive as a safe-haven asset.

Technical Analysis of XAU/USD price chart

On the 4-hour XAU/USD chart, a downward wave has concluded at $1901.00, followed by a corrective rally to $1930.00. A consolidation phase is anticipated below this level. Should the price break below the consolidation range, there's potential for an extension of the downward wave to $1893.40. The Moving Average Convergence Divergence (MACD) confirms this scenario, with its signal line positioned above zero but appearing to gear up for a downward movement.

On the 1-hour chart, the price has formed a consolidation zone around $1915.85. Breaking out of this range to the upside, it has corrected to $1930.25. A retracement to $1915.00 is anticipated today. If this level is decisively breached, the door may open for a more significant drop to $1893.40. The Stochastic oscillator supports this outlook, showing its signal line above the 80 mark but trending strictly downward.

In summary, gold is experiencing a bullish streak, propelled by market uncertainties and key economic events on the horizon. Technical indicators point towards a possible short-term decline, but overall sentiment appears cautiously optimistic. Investors should closely monitor upcoming central bank meetings and currency fluctuations for further clues on the metal's future trajectory.

Share: Feed news

Before you enter foreign exchange and stock markets, you have to remember that trading currencies and other investment products is trading in nature and always involves a considerable risk. As a result of various financial fluctuations, you may not only significantly increase your capital, but also lose it completely. Therefore, our clients have to assure RoboForex that they understand all the possible consequences of such risks, they know all the specifics, rules and regulations governing the use of investment products, including corporate events, resulting in the change of underlying assets. Client understands that there are special risks and features that affect prices, exchange rates and investment products.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

EUR/USD loses traction, retreats below 1.0600

EUR/USD loses traction, retreats below 1.0600

EUR/USD lost its recovery momentum and declined below 1.0600 in the American session on Friday, erasing a portion of its daily gains in the process. Nevertheless, the risk-positive market atmosphere after PCE inflation data helps the pair limit its losses.

EUR/USD News

GBP/USD turns negative on the day below 1.2200

GBP/USD turns negative on the day below 1.2200

GBP/USD reversed its direction and slumped below 1.2200 in the American session on Friday after rising above 1.2270 earlier in the day. Position readjustments and profit-taking on the last trading day of the quarter seems to be weighing on Pound Sterling.

GBP/USD News

Gold reverses direction, drops below $1,860

Gold reverses direction, drops below $1,860

Following a steady rebound toward $1,880 on Friday, Gold price made a sharp U-turn and turned negative on the day near $1,860. Although the 10-year US T-bond yield is down more than 1%, XAU/USD struggles to find demand on the last day of Q3.

Gold News

Polkadot Price Forecast: DOT reversal seems inevitable after 92% correction from all-time high

Polkadot Price Forecast: DOT reversal seems inevitable after 92% correction from all-time high

Polkadot price, in nearly two years, has shed 92.91% from its all-time high of $55.09. The massive downswing in DOT has pushed it down to levels that were last seen in October 2020. Hence, the chances of this altcoin forming a bottom and rallying are high. 

Read more

Earnings beat triggers Nike to spike 9%

Earnings beat triggers Nike to spike 9%

Nike (NKE) stock has surged over 9% in Friday’s premarket, climbing above $98 per share, following late Thursday’s fiscal first-quarter earnings release. Nike beat pessimistic earnings expectations by more than 23% and hiked its dividend by 9%.

Read more

Majors

Cryptocurrencies

Signatures