2024-03-14 • Updated
Gold prices bounced back on Wednesday, reaching $2,173.60 after briefly dipping to $2,150.00. Traders speculate that the US Federal Reserve (Fed) might reduce borrowing costs, but a recent report showing higher-than-expected inflation in the US could delay such actions. Despite signs of a cooling labor market, the US economy remains robust, with inflation staying above 3.2% in the twelve months to February. Fed Chair Jerome Powell stated last week that policy easing is possible if conditions allow, but the Fed remains data-dependent and cautious about starting a trimming cycle. Meanwhile, the XAU/USD remains in positive territory, despite a slight increase in the US 10-year Treasury bond yield to 4.19%.
On the daily timeframe of XAUUSD, we can clearly see that the structure has been broken, with price shooting clear of the previous high. In line with this, we also see that the moving average array on the daily timeframe remains clearly bullish.
On the 1-hour timeframe, we see price gliding towards the trendline support, as well as the 200-period moving average. There is also a notable demand zone just below the trendline support. Comparing the price action on the 1-hour timeframe with that of the daily timeframe, I believe it’s quite clear that the sentiment is bullish - and the reason(s) why. Do note, that a break below the trendline and the demand zone could indicate the onset of renewed bearish vigour.
Analyst’s Expectations:
Direction: Bullish
Target: $2,181.88
Invalidation: $2,149.59
The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.
You can access more of such trade ideas and prompt market updates on the telegram channel.
During the Asian session on Wednesday, the USD/CAD pair rebounded after two days of losses, reaching around 1.3590. This uptick is fueled by a stronger US dollar and lower crude oil prices, which put pressure on the Canadian dollar. The decline in Western Texas Intermediate (WTI) oil prices to approximately $80.70 is attributed to...
The Australian Dollar (AUD) rebounds on Monday, despite a slight dip in the US Dollar (USD) and higher US Treasury yields. Investors are eyeing Australian monthly Consumer Price Index (CPI) data for February and US Gross Domestic Product (GDP) for Q4 2023. The AUD gains momentum as the ASX 200 Index rises, especially in mining and energy sectors. Additionally, the Aussie...
Gold prices rose on Monday as the US Dollar weakened amidst speculation about potential Federal Reserve rate cuts starting in June. This weakened Dollar was partly due to improved risk sentiment pushing US Treasury yields lower. Despite facing challenges from declining yields, gold prices recovered to nearly $2,170 per troy ounce, driven by the Dollar's weakness. Federal Reserve Chair...
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
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Don’t waste your time – keep track of how NFP affects the US dollar and profit!
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