Recommendation for gold: Buy

Buy Stop: Above 1808.53.

Stop Loss: Below 1781.11.

Indicator Signal
RSI    Neutral
MACD    Buy
Donchian Channel Neutral
MA(200) Buy
Fractals    Neutral
Parabolic SAR Buy

 

Chart analysis

XAUUSD

The technical analysis of XAUUSD price on the 4-hour timeframe shows XAUUSD,H4 is retracing after breaching above the 200-period moving average MA(200) which has tilted down. We believe the bullish momentum will continue after the price breaches above the upper Donchian boundary at 1808.53. This level can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 1781.11. After placing the pending order the stop loss is to be moved every day to the next fractal low indicator, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop-loss level (1781.11) without reaching the order (1808.53) we recommend cancelling the order: the market sustains internal changes which were not taken into account.

Fundamental analysis

The August US CPI report indicated the headline inflation ticked down to 5.3% over year from 5.4% in July. Will the XAUUSD price continue rising?

Current technical setup is bullish for XAUUSD. The Bureau of Labor Statistics reported yesterday the annual inflation rate in the US eased to 5.3% in August from a 13-year high of 5.4% reported in June and July, in line with market expectations. Last Friday data showed US producer prices posted another record increase in August: producer price index (PPI) jumped 8.3% from August 2020, not seasonally adjusted, the biggest increase since the data was first collected in November 2010. Both CPI and PPI indicate inflation pressure is high in US economy as it is recovering after the start of COVID epidemic as the central bank eased it monetary policy. And while policy makers had suggested they were considering tapering of purchases of bonds as inflation pressure built up, the recent data pointing inflation has probably peaked. This lessens the odds of an abrupt tightening of US monetary policy, which is also bullish for XAUUSD.


Want to get more free analytics? Open Demo Account now to get daily news and analytical materials.

This overview has an informative character and is not financial advice or a recommendation. IFCMarkets. Corp. under any circumstances is not liable for any action taken by someone else after reading this article.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD holds above 1.1700 but the upside is limited

The EUR/USD pair flirted with 1.1750 but was unable to retain its modest intraday gains. Now trading in the 1.1720 price zone, bears retain control ahead of the US central bank monetary policy decision.

EUR/USD News

GBP/USD: Pressure mounts ahead of central banks’ announcements

The Fed and the BoE will make announcements this week. UK public inflation expectations are up for this year and the upcoming ones. GBP/USD is technically bearish in the near term, poised to retest August monthly low.

GBP/USD News

Gold: Further advances depend on the Fed

A better market mood put pressure on the American currency. The US Federal Reserve will announce its monetary policy decision on Wednesday. Gold advanced for a second day in a row, but additional gains are in doubt.

Gold News

Shiba Inu bulls can't hold SHIB from dropping to $0.000006

Shiba Inu price has fallen -28% over the past four trading sessions. Bears remain in control as bulls fail to complete a breakout above $0.000008. Bulls must hold $0.000007 to prevent a drop towards $0.000006.

Read more

Fed Preview: Three ways in which Powell could down the dollar, and none is the dot-plot

No taper now, but when? That is the main question for the Fed in its all-important September meeting. The bank buys $120B worth of bonds every month and it is set to reduce the pace at some point – the first step toward raising interest rates. 

Read more

Majors

Cryptocurrencies

Signatures