Gold slightly increased on August 8
☘️Fundamental Analysis
Gold prices gained some positive momentum on Thursday and snapped a four-day losing streak, despite a lack of follow-through and remaining below the $2,400 mark heading into the European session. Meanwhile, the lack of bullish sentiment warrants some caution before positioning for any meaningful upside move, although the fundamental backdrop appears to be tilted heavily in favor of bullish traders.
Investors remain concerned about the economic slowdown in China and the possibility of a recession in the United States. This, coupled with escalating geopolitical tensions in the Middle East, will act as a bullish driver for Gold prices. Furthermore, expectations of more rate cuts by the Federal Reserve (Fed) put US Dollar (USD) bulls on the defensive and confirmed the positive outlook for gold prices.
☘️Technical Analysis
Gold continues to trade within the price range of 2380 and 2415. Gold needs more catalysts to break out of this price range. On the chart, we can see that the price is clinging to the EMA 34 in a downtrend. To achieve the bullish condition, gold first needs to close the candle above the 2400 area. Pay attention to the price reaction zones to have the best trading strategy.
Breakout upper band: 2391 - 2400 - 2406
Breakout lower band: 2381 - 2375 - 2365
Resistance: 2397 - 2400 - 2406 - 2420
Support: 2381 - 2375 - 2370 - 2365 - 2352 - 2345
SELL zone 2405 - 2407 stoploss 2411
SELL zone 2420 - 2422 stoploss 2426
BUY zone 2373 - 2371 stoploss 2367
BUY zone 2347 - 2345 stoploss 2341
Gold prices gained some positive momentum on Thursday and snapped a four-day losing streak, despite a lack of follow-through and remaining below the $2,400 mark heading into the European session. Meanwhile, the lack of bullish sentiment warrants some caution before positioning for any meaningful upside move, although the fundamental backdrop appears to be tilted heavily in favor of bullish traders.
Investors remain concerned about the economic slowdown in China and the possibility of a recession in the United States. This, coupled with escalating geopolitical tensions in the Middle East, will act as a bullish driver for Gold prices. Furthermore, expectations of more rate cuts by the Federal Reserve (Fed) put US Dollar (USD) bulls on the defensive and confirmed the positive outlook for gold prices.
☘️Technical Analysis
Gold continues to trade within the price range of 2380 and 2415. Gold needs more catalysts to break out of this price range. On the chart, we can see that the price is clinging to the EMA 34 in a downtrend. To achieve the bullish condition, gold first needs to close the candle above the 2400 area. Pay attention to the price reaction zones to have the best trading strategy.
Breakout upper band: 2391 - 2400 - 2406
Breakout lower band: 2381 - 2375 - 2365
Resistance: 2397 - 2400 - 2406 - 2420
Support: 2381 - 2375 - 2370 - 2365 - 2352 - 2345
SELL zone 2405 - 2407 stoploss 2411
SELL zone 2420 - 2422 stoploss 2426
BUY zone 2373 - 2371 stoploss 2367
BUY zone 2347 - 2345 stoploss 2341
Note
SELL zone 2420-2422 + 100 pips Hit FULL TPNote
Gold price struggles to capitalize on the previous day’s strong rise of nearly 2%.
The upbeat US labor market report underpins the USD and acts as a headwind.
The risk-on impulse further caps gains, though Fed rate cut bets offer support.
Note
Note
Gold price consolidates in a range, bullish potential intact amid rising geopolitical risks
Gold price struggles to capitalize on recent gains and oscillates in a narrow band during the Asian session on Monday. A generally positive tone around the equity markets is acting as a headwind for Gold price.
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