XAUUSD(Gold) -Trading Strategy For Next Monday

Sep 21

From a technical perspective, gold closed positively on a weekly basis. A wave of bottoming and rebounding at the end of the week pushed the weekly line to close with a positive line with a lower shadow, showing the strengthening of bullish power. In terms of the overall structure of the weekly line, various indicators are biased towards the bulls, indicating that gold bulls have strong momentum.

The daily line has continuously closed positive, especially a medium-sized positive line on Friday. The short-term moving average continues to move upward, and the upper limit of the Bollinger Band has gradually formed a support area. This area will become an important defensive position for bulls in addition to the $2,600 mark. As long as the gold price can continue to stay above $2,600, the bulls will continue to take the initiative. The technical indicators of each cycle show a bullish arrangement. However, the MACD indicator shows a clear divergence, which means that we still need to be vigilant about possible high-level declines in the short term. Overall, the daily level trend tends to be bullish. The current gold price is at a high closing state, and it is expected that it may continue to challenge new highs next week.

On the 4-hour chart, the bull trend continues to be strong, forming six consecutive positives, making the price effectively break through the short-term moving average and the upper Bollinger Band. Other cycle indicators are also arranged in a bullish manner. The MACD indicator forms a golden cross and diverges upward, showing the potential to further impact the upper resistance.

In the 1-hour chart, the moving average golden cross is upward and begins to diverge, and gold bulls are accumulating strong momentum at high levels. After falling back to $2,602 twice during the US trading period, it rebounded strongly and set a new high, indicating that $2,602 has become an important short-term support level. Next week, we need to pay attention to the defense of the $2,600 mark. If this mark is accidentally broken, it may indicate that a short-term high has been formed. At that time, the gold price will most likely pull back to the $2,585 line. At this time, you can consider arranging long orders on dips.

Overall, gold is still biased toward the long side in the short term. In terms of operation, it is recommended to focus on long positions on callbacks and supplementary short positions on rebounds. In the short term, focus on the 2630-2632 resistance range on the upper side and the 2600-2602 support range on the lower side. XAUUSD

Sep 22

Trade active

Gold fundamentals analysis
In terms of US economic data, S&P Global will release preliminary manufacturing and service purchasing managers' indexes (PMIs) for September next Monday. If the manufacturing PMI recovers to above 50 and the service PMI stabilizes above 50, investors may be encouraged by the strong economic outlook. In this case, the dollar may remain resilient against its main competitors and cause gold to revise downward. On the other hand, lower-than-expected PMI data may have the opposite effect on the dollar.

Next Thursday, the US Bureau of Economic Analysis (BEA) will release the final revision of gross domestic product (GDP) for the second quarter, which is unlikely to trigger a market reaction.

Next Friday, the US Bureau of Economic Analysis will release the August personal consumption expenditures (PCE) price index, which is the inflation indicator preferred by the Federal Reserve. Investors are less concerned about inflation than earlier this year. Nevertheless, if the core PCE price index increases by 0.3% or more month-on-month, it may boost the dollar. On the other hand, weak data may immediately put pressure on the dollar. With the Fed's "quiet period" coming to an end, investors will also pay close attention to the comments of policymakers.

Markets are pricing in a nearly 70% chance that the Fed will cut its policy rate by at least another 75 basis points in 2024, according to the CME's FedWatch tool. If Fed officials dampen the odds of another big rate cut this year, market positioning suggests the dollar could rebound, dragging gold lower. If policymakers consider another 50 basis point rate cut at an upcoming meeting, the dollar may struggle to find demand.

Sep 22

Trade active

Gold Trading Strategies

🎯Strategy 1: Gold Sell when gold rebounds to around 2630-2632, stop loss 6-10 points, target around 2615-2605, break the position and look at the 2600 line✅

🎯Strategy 2: Gold Buy when gold pulls back to around 2600-2603 , stop loss 6-10 points, target around 2620-2625, and look at the 2630 line if the position is broken✅

Sep 23

Trade active

Gold Trading Strategies

🎯Strategy 1: Gold Sell when gold rebounds to around 2625-2628, stop loss 6-10 points, target around 2610-2605, break the position and look at the 2600 line✅

🎯Strategy 2: Gold Buy when gold pulls back to around 2602-2605 , stop loss 6-10 points, target around 2620-2625, and look at the 2630 line if the position is broken✅