Gold Price Analysis: XAU/USD bulls step back in at a discount, taregtting continuation to $1,965

Gold has started to pick up a bid again after fading the initial 4Hr resistance line breakout.
An opportunity of a 1:2.5 risk to reards buy setup has emerged from the recent price action in bullish conditions.

Ross J Burland FXStreet

This was a developing story for the day.

Further to the following analysis,

Gold Price Analysis: XAU/USD breaks out of the current chart formation it is up to the bulls to keep the momentum going,

whereby the price has broken a 4HR resistance line, the price of gold has been faded at the session highs.

However, the correction has stalled at a significant Fibonacci level of the strong impulse and has moved back into bullish territory on the shorter-term time frames.

This gives rise to an opportunity to buy into the strength at a discount within the day's range and target a familiar resistance structure in the 1965s.

The following offers a 1: 2.5 risk to reward buy setup opportunity from hourly and 15 min time frame analysis:

Hourly chart

15-chart setup

As can be seen, the price is testing resistance from which could give rise to a pullback to the new support structure where a buy limit order can be placed.

Targetting 1965 with a top below structure offers a 1:2.5 risk to reward trade setup.

We will be following the price action on a 15-min time frame and monitor for breakeven opportunities if the buy limit is filled.

Update: Buy limit filled

Update: Breakeven achieved

As can be seen, following a spell of being in drawdown, the price, as expected, finally broke to the upside and new structure has been created which should act as a support on retests of the downside prior to achieving the target.

The worst-case scenario is now a breakeven trade as the risk of the positing run free towards a 2.5 R target.

Target achieved

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

GBP/USD keeps the firm tone above 1.3600

GBP/USD clings to its daily gains, although it gives back some of them and recedes toward the 1.3630-1.3620 band on Thursday. Cable’s uptick comes despite the modest bounce in the Greenback, while investors gear up for key data releases on the UK calendar on Friday.

EUR/USD treads water near 1.1670

EUR/USD gives away all its initial gains and receded to the sub-1.1700 region. The US Dollar’s late recovery has dragged the pair lower, leaving it practically unchanged following the NA session on Thursday. In the meantime, investors gear up for the release of preliminary S&P Global Manufacturing and Services PMIs on both sides of the Atlantic on Friday.

Gold advances to fresh high since June amid renewed USD selling, fading Fed hike bets

Gold hits a fresh high since early June, around the $4,544 region, during the Asian session on Friday and looks to build on the momentum above a technically significant 200-day Simple Moving Average.

Bulls in control with Bitcoin heading toward $80,000, Ethereum $2,500, XRP $1.50

Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) are extending their rallies as bullish momentum strengthens and continue to cheer the US Treasury’s decision to double its debt buyback operations. BTC has climbed nearly 20%, ETH over 25% and XRP nearly 30% so far this week.

$40 trillion debt black hole: Is a financial crisis coming?

The United States is closing in on a milestone that would have been almost unimaginable not long ago: $40 trillion in national debt. That staggering figure framed the latest episode of the Money Metals Midweek Memo, as host Mike Maharrey examined what he calls the economy’s “debt black hole” and zeroed in on a relatively obscure corner of the financial system that could become a much bigger problem: the $1.4 trillion private credit market.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.