GOLD - BEAR ATTACK SOON ?
Updated
GOLD is growing unpredictably towards ATH. The market did not react in any way to last week's US fundamental data and now the price is not reacting to strong levels and liquidity zones. Ahead of ATH after 3 weeks of forming.
Investors remain cautious as the US Fed is expected to follow a path of moderate interest rate cuts (skipping a cut in November, or a 0.25% cut).
The gold price is actively supported by the tense situation in the Chinese markets and lower US Treasury yields, which helps the gold price to take another leap towards the ATH.
Now all eyes will be on Thursday when China holds a press conference and the US retail sales report is released.
Resistance Zone : 2680 - 2688
Support Levels : 2664,2658,2645
Technically, I don't think that the market will let the resistance breakout happen the first time. The pullback from 2685, formed 3 weeks ago, was made on the back of strong economic data, so the huge pool of liquidity above 2685 can be defended quite aggressively by the bears.
Technically, there are no signs for the continuation of growth. They may appear after the retest, but it will become clear after the fact.
P.S. : My short position is open at CMP 2680 with SL 2702.
Investors remain cautious as the US Fed is expected to follow a path of moderate interest rate cuts (skipping a cut in November, or a 0.25% cut).
The gold price is actively supported by the tense situation in the Chinese markets and lower US Treasury yields, which helps the gold price to take another leap towards the ATH.
Now all eyes will be on Thursday when China holds a press conference and the US retail sales report is released.
Resistance Zone : 2680 - 2688
Support Levels : 2664,2658,2645
Technically, I don't think that the market will let the resistance breakout happen the first time. The pullback from 2685, formed 3 weeks ago, was made on the back of strong economic data, so the huge pool of liquidity above 2685 can be defended quite aggressively by the bears.
Technically, there are no signs for the continuation of growth. They may appear after the retest, but it will become clear after the fact.
P.S. : My short position is open at CMP 2680 with SL 2702.
Note
Positive US retail sales data & Jobless claims data helped Gold to break its ATH & now the situation seems like further continuation of bullish trend.Note
GOLD in the phase of realizing the accumulated potential updates ATH to 2714 and is in no hurry to give up, movements can be continued..
Gold feels support from the Chinese markets after positive hints from the People's Bank of China revived hope for stimulating the economy. Also from the European side - the ECB cut its key rate, in anticipation of another, fourth cut in December.
Strong data from the US on Thursday pointed to a solid economic outlook, but this failed to change the odds of a 0.25% rate cut by the US Fed in November.
In addition, the gold price found fresh demand amid escalating geopolitical tensions between Iran and Israel (Hamas leader eliminated)
Technically, gold continues its bull run once again. The chart indicates key support areas that may be of interest before further rally. A correction has been forming since the opening of the European session, but price is quickly returning to ATH. If the bulls hold the defense above 2711, the growth will continue without a pullback. Targets are indicated on the chart.
Resistance Levels : 2712 - 2720
Support Levels : 2702 - 2696 - 2690
Trade active
Created short position at CMP 2717 with SL 2730 for huge downside target.
Trade closed: stop reached
SL level 2730 reached. Short position closed.
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