XAUUSD


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The XAU/USD (Gold Spot US Dollar) pair is currently trading at $2,387.40, with a support level at $2,381 and a resistance level at $2,3911. Here is a detailed analysis:
- Technical Analysis:
- The XAU/USD pair on the M30 timeframe presents a potential selling opportunity due to a recent downward breakout from a well-defined Channel pattern. This suggests a shift in momentum towards the downside in the coming Hours2.
- The daily XAU/USD pair chart shows buyers timidly adding longs. The pair holds above the 23.6% Fibonacci retracement of the April/May rally at $2,326.50, a relevant support level. Furthermore, it finds buyers for a second consecutive day around a mildly bearish 20 Simple Moving Average (SMA), while the longer ones maintain their bullish slopes far below the current level. Finally, technical indicators turned higher within positive levels, although with limited upward strength. In the near term, and according to the 4-hour chart, XAU/USD is neutral to bullish1.
- Fundamental Analysis:
- The rising gold demand from robust over-the-counter market investments, consistent central bank purchases, and safe-haven flows amid Middle East geopolitical risk act as a tailwind for XAU/USD1.
- The US Dollar's modest recovery drags the yellow metal, while the US CPI and PPI data loom, which could impact the price of gold1.
- Market Sentiment:
- The geopolitical situation is worsening, which could lead to increased safe-haven flows and potentially higher gold prices2.
- There is a mild bullish move expected, with a target of $2,424 if the price stays above $2,3822.
- Trading Strategies:
- Traders are considering entering a short position around the current price of $2,388 if the price stays below $2,362, targeting $2,348 and $2,320 below that2.
- A long position is recommended around the current price if the price breaks above the resistance level, targeting $2,4242.
In conclusion, the XAU/USD pair is currently trading in a narrow range, with technical indicators suggesting a potential shift in momentum. Traders should monitor the situation closely, considering both technical signals and geopolitical developments that could influence gold prices.
Source:
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1.
Gold Forecast, News and Analysis (XAU/USD)
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