XAUUSD – US Government Shutdown Pressure on Gold
Hello Traders,
For the first time since 2018, the US Government is facing the risk of a shutdown. This can only be avoided if Congress passes new funding legislation, but the timing remains uncertain. This political backdrop is exerting strong pressure on the financial markets, and gold – the traditional safe haven asset – has become the focal point for investors.
Technical Outlook
Gold continues to set new ATHs right in the Asian session today, indicating the uptrend remains intact.
The upward price channel on H4 maintains a beautiful structure, with the main trend continuing to favour buying.
Yesterday's dip was merely a "liquidity sweep," after which the price quickly returned to its upward momentum.
Short positions can be considered when the price hits strong resistance, combining Fibonacci + Trendline, to optimise winning probabilities.
Trading Scenario
Sell (short-term at resistance):
Entry: 3884 – 3886
SL: 3890
TP: 3872 – 3860 – 3845 – 3830
Buy (aligning with the main trend):
Entry: 3820 – 3823
SL: 3816
TP: 3835 – 3850 – 3862 – 3880
Conclusion
Gold remains strongly supported by the political instability in the US.
The medium-term strategy continues to prioritise Buying at support zones, while Selling should only be considered when there is a clear reaction at resistance zones.
Traders need to closely monitor political news, as any developments related to the US government could alter the short-term structure of gold.
Follow me for the quickest updates on new scenarios as the price path changes.
