Slobodan Drvenica
Windsor Brokers
Gold price is trading within a narrow range on Wednesday, following nearly 3% drop in past two days, which cracked psychological $2300 support, but failed to sustain break lower, contained by daily Kijun-sen ($2289)
Tuesday’s action formed a hammer candlestick, generating an initial signal of reversal of the limited pullback which could be for now described as a healthy correction.
In addition, bear-trap under rising 20DMA may further boost the signal however, more action at the upside will be required to confirm.
Near-term bias is expected to remain with bulls while the price stays above $2300 level, with repeated close above 20DMA ($2324) to reinforce near-term structure for acceleration through $2340 (Fibo 38.2% of $2417/$2291) and close above 10DMA ($2358) to confirm reversal.
Fourteen-day momentum reversed north above the centre line, pointing to existing bullish momentum and RSI stays above neutral 50 zone.
Caution on firm break of pivotal supports at $2300 and $2289, which would increase the risk of deeper pullback.
Markets focus on key economic releases from the US this week (Q1 GDP on Thursday and PCE price index, Fed’s preferred inflation gauge) which would provide more clues about the Fed’s interest rate path and generate fresh signals for the yellow metal.
Res: 2340; 2358; 2369; 2388
Sup: 2324; 2300; 2289; 2260
Interested in XAU/USD technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD holds above 1.0750 to start the week
EUR/USD trades in positive territory above 1.0750 in the European session on Monday. The US Dollar struggles to find demand following Friday's disappointing labor market data and helps the pair hold its ground.
GBP/USD clings to small gains above 1.2550
Following Friday's volatile action, GBP/USD edges highs and trades in the green above 1.2550. Soft April jobs report from the US and the modest improvement seen in risk mood make it difficult for the US Dollar to gather strength.
Gold price rebounds on downbeat NFP data, eyes on Fedspeak
Gold price (XAU/USD) snaps the two-day losing streak during the European session on Monday. The weaker-than-expected US employment reports have boosted the odds of a September rate cut from the US Fed.
Bitcoin Cash could become a Cardano partnerchain as 66% of 11.3K voters say “Aye”
Bitcoin Cash is the current mania in the Cardano ecosystem following a proposal by the network’s executive inviting the public to vote on X, about a possible integration.
Week ahead: BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.