GOLD - Quickly catch the rebound of goldThis morning's gold price continued to increase by 16.7 USD compared to yesterday's closing level to 1,936.5 USD/ounce, the gold price reached its highest level in three weeks.
The US Employment Turnover (JOLTS) report and consumer confidence index were much lower than expected, spurring fresh buying demand for the precious metal.
Gold prices continue to maintain a solid recovery but there is still a potential risk that it will be lower in the near future because this week there is still a lot of economic news that strongly affects Gold prices.
Goldsignals
GOLD - Scalping StrategyGold prices slightly extended its gains and successfully continued a third day of gains.
TVC:GOLD hovers around $1,900/oz during the Asian session on Wednesday, showing signs of recovery from four consecutive weeks of losses despite a firmer US Dollar (USD).
However, a stronger recovery is unlikely at the moment.
After days of continuous decline, gold finally showed signs of changing the trend. At first, we can look at the problem as follows:
1. Economic data in the US is showing signs of getting better
2. Inflation may not reach the target of the Fed, but it can also be called cooled down
3. The economic data is giving clearer evidence of the US economic scenario will have a soft landing if the FED is ready to QE after this period.
=> From the above points, I think that Gold is still in a downtrend, and this rally may not be as strong as expected.
You can set up sell order at price zone 1905-1907 SL 1913 TP 1900,1895
Inflation Cools, Gold Heats Up Inflation Cools, Gold Heats Up
In June, the United States inflation fell to 3%, which is the lowest since March 2021. This was slightly below the market's expectations of 3.1% and a significant decline from May's rate of 4%. Additionally, the core inflation rate unexpectedly dropped to 4.8%, marking its lowest level since October 2021.
The implication of this deceleration is that it could prompt the Federal Reserve to scale back its plans for interest rate hikes. With inflation showing signs of cooling, the central bank may now be inclined to raise rates only once more throughout the remainder of the year.
In the wake of the inflation report gold prices shot up, soaring by more than 1.3%. The metal breached the $1,940 resistance level but fell just short of clearing the $1,960 overhead barrier. If further upward momentum materializes, it could pave the way for a potential retest of $1,975 and $1,980.
At the same time, the US dollar faced a steep decline, sinking to its lowest point in over 14 months. Against the Swiss franc, it tumbled to depths not witnessed since early 2015, settling at 0.8673 francs, down 1.4%. Earlier in the session, it even touched 0.8660, marking its weakest position since the Swiss National Bank abandoned the Swiss currency peg back in January 2015. Against the Japanese yen, the dollar hits a six-week low of 138.47 yen, witnessing a 1.4% decline. Additionally, the US dollar weakens by more than 1.5% against the New Zealand and Australian dollars. Conversely, the euro surges to its highest level since March last year, reaching $1.1125. The Euro trades up 1.2% at $1.113.
GOLD LONG IDEAGOLD ANALYSIS:
GOLD has been one of the most considered safe havens against the fall of the USD.
Most investors turned to consider GOLD as a safe haven due to the following factors:
The CORE PCE fall as expected on Friday where which indicates that FED will not put more effort into tightening since the stubborn inflation is coming close to the target.
FED may pause rate hikes this year (2023) because inflation is on hand and coming closer to the target which is 2%.
Technically and for the longer term GOLD is bearish however the current bullish waves gave room for us to closely look at important zones where we have 1893.
The price has bounced from the area level now 1893 and 1911.722 because traders found the area as 61.8 Retracement of the current high around 1922.689, hence there may be a correction from this level back to 1904.293 which will definitely be our entry zone.
Technically GOLD turns bullish for the short term where an inverted H&S formed and its neckline was broken above, our entry for the broken neckline of inverted H&S will exactly be the same level of 61.8 Retracement level of the current high which is 1904.770.
XAUUSD 28/06: Where does Gold go after Fed Speaks?OANDA:XAUUSD The US dollar benefited from a fresh rise in US Treasury yields, sending gold prices plunging.
Amid increased hawkish sentiment around the Fed rate outlook, all eyes will be on Fed Chair Jerome Powell's speech later Wednesday.
The 14-day Relative Strength Index (RSI), suggesting that gold's downside risks remain.
So, the nearest support is at $1,908, a breakout of which will open exchanges towards $1,900. Going further, $1,886 will be the limit for Gold buyers (March 15 low).
On the other hand, a strong resistance is seen near the $1930 area, above which $1944. The next relevant upside target is seen at the psychological $1950 level.
You might consider Selling gold around 1943 – 1940
And my goal will be 1933 – 1920
You might consider Buying gold around 1902 – 1905
And my goal will be 1908 – 1922
Note: Fully install TP, SL to prioritize safety in trading and conquering the market.
Gold downward movement . Target expected is 1820/1816Time Frame 30 Minutes.
Gold price is below the Moving Average 20 and 40 with RSI below 80. So we can expect a Target of gold 1820/1816
NOTE: Published Ideas are for ‘’EDUCATIONAL PURPOSE ONLY’’ trade at your own risk.
NOTE: RESPECT The risk. SL should not be more than 2% of the capital.
Happy Trading