Slobodan Drvenica
Windsor Brokers
XAU/USD
Gold price is holding within a narrow consolidation for the second consecutive day after falling by 4.4% last Thu/Fri.
Limited upticks suggest that strong downside pressure persists, keeping in play risk of deeper correction of larger $1614/$1959 rally.
Recent stronger than expected US labor data added to expectations that the Fed will remain hawkish, with comments from US policymakers signaling that the central bank continue to raise interest rates to at least 5.4%, to bring high inflation under control.
I addition, tight labor market signals that further rise of borrowing cost may not be so harmful for economic growth and diminish the risk that the economy will fall into recession.
Oversold conditions on daily chart warn of prolonged consolidation, with near-term action so far being unable to sustain break above weekly cloud top ($1875) which reverted to initial support and extended upticks expected to stay under broken psychological $1900 level.
This could keep near-term bias with bears and offer better selling opportunities for push towards targets at $1839/27 (55DMA / Fibo 38.2% of $1614/$1959).
Res: 1881; 1891; 1900; 1909
Sup: 1860; 1839; 1827; 1806
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 edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.