Gold market commentary on February 17, 2023
Gold prices were little changed by the end of Thursday’s trading session, but the yellow metal extend its recent losing streak during Friday’s Asia-Pacific trading session. The anti-fiat yellow metal is now on course to sink over 2 percent this week. In fact, the 5.25% drop so far in February is shaping up to be the worst month since June 2021.
This week in particular, prices have been wobbly since the aftermath of Tuesday’s US inflation report. For January, the country saw unexpectedly higher CPI data, opening the door to a still-hawkish Federal Reserve. The reason why this matters is that markets have been slowly unwinding expectations of a rate cut pivot towards the end of this year.
XAU/USD Daily Chart
XAU/USD continues to decline after confirming a breakout under the 20- and 50-day Simple Moving Averages (SMA). That is setting up prices for further losses as the 38.2% Fibonacci retracement level at 1828 is being tested. Falling under the latter exposes the midpoint at 1787. Otherwise, a turn higher has immediate support as the 50-day SMA.
Trading recommendation:
Buy soup at the price range 1823 - 1820
Stop Loss: 1816
Take profit 1: 1835
Take Profit 2:1844
Take profit 3: 1850
Canh sell at the price range 1847 1846
Stop loss 1850
Take profit 1: 1840
Take profit 2: 1835
Take profit 3: 1830
Note: Always set TP and SL in all trading cases
This week in particular, prices have been wobbly since the aftermath of Tuesday’s US inflation report. For January, the country saw unexpectedly higher CPI data, opening the door to a still-hawkish Federal Reserve. The reason why this matters is that markets have been slowly unwinding expectations of a rate cut pivot towards the end of this year.
XAU/USD Daily Chart
XAU/USD continues to decline after confirming a breakout under the 20- and 50-day Simple Moving Averages (SMA). That is setting up prices for further losses as the 38.2% Fibonacci retracement level at 1828 is being tested. Falling under the latter exposes the midpoint at 1787. Otherwise, a turn higher has immediate support as the 50-day SMA.
Trading recommendation:
Buy soup at the price range 1823 - 1820
Stop Loss: 1816
Take profit 1: 1835
Take Profit 2:1844
Take profit 3: 1850
Canh sell at the price range 1847 1846
Stop loss 1850
Take profit 1: 1840
Take profit 2: 1835
Take profit 3: 1830
Note: Always set TP and SL in all trading cases
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