What will happen to the bulls?

Sep 25, 2023

Gold prices hovered above $1,920 during Monday's Asian trading session. Prices for the yellow metal ended a losing streak on Friday as the US Dollar (USD) pared the day's gains, most likely due to falling US government bond yields.

However, US bond yields have recovered, with the 10-year US Treasury yield rising to 4.45%, up 0.50% at the time of writing.

Regarding the latest data from S&P Global, business activity in the United States (US) was roughly flat in September. The S&P Global Manufacturing PMI rose to 48.9 from 47 .9 last month, higher than the expected 48.0.

Sep 25, 2023

Note

The US Dollar Index (DXY), which measures the value of the Greenback against six major currencies, is trying to gain momentum, hovering around 105.60 at the time of writing.

Furthermore, Boston Fed President Susan Collins has suggested that further tightening is possible but emphasized the need for patience. In addition, Governor of the US Federal Reserve (Fed) Michelle W. Bowman also had a similar opinion, asserting that it is necessary to increase interest rates more to control inflation.

Rising interest rates increase the opportunity cost of investing in non-yielding assets, which implies a negative outlook for precious metals such as Gold.

Sep 25, 2023

Note

BUY price range: 1921-1919

SL: 1915

TP1: 1926
TP2: 1933

Sep 25, 2023

Trade active

Plan BUY : Running +25pip ✅✅✅

Sep 25, 2023

Trade active

Plan BUY : + 35pip ✅✅✅

Gold is running very well in line with my analysis, congratulations to everyone on our very good profits

Sep 25, 2023

Trade closed: target reached

PLAN BUY : Hit TP1 : +50PIP ✅✅✅

Sep 25, 2023

Note

Gold prices (XAU/USD) lost momentum around $1,920 during early European trading on Monday. Meanwhile, the US Dollar Index (DXY) attracted some buying and hovered around 105.60, near its highest level since March 2023.

That shows, the story of higher interest rates for longer in the US is the main driving force boosting the US Dollar, pulling gold prices down. It is worth noting that rising interest rates increase the opportunity cost of investing in non-yielding assets, implying a negative outlook for XAU/USD.

Sep 25, 2023

Note

The US Dollar has also shown signs of tapering volatility, but the broader trend remains bullish due to the resilient US economy. Investors became cautious about the US economic outlook when the Fed announced it would keep interest rates restrictive enough in the long term to control inflation. This could increase unemployment, slow labor demand and make factory operations more vulnerable. This week investors will focus on US Durable Goods Orders data and the Fed's preferred inflation gauge for August.

Sep 26, 2023

Note

The hourly candle shows Gold sliding to last week's low below $1,915.00, while gains are seen limited by near-term resistance from the 100-hour Simple Moving Average (SMA) near 1,925 .00 USD.

On the daily candles, XAU/USD is seeing a notable lack of meaningful momentum, with Gold stuck near the 200-day SMA and still moving upward towards $1,930.00.

Bidders will look to push Gold back above $1,930.00 to continue pushing higher, while sellers will look to take XAU/USD to August lows below $1,890.00.