The next move for XAU/USD is likely to be a bullish one, based on the following analysis:
- Technical Indicators: The daily chart shows that XAU/USD trades above all its moving averages, with a bullish 20 Simple Moving Average (SMA) gaining upward traction at around $2,338 while above the longer ones. Technical indicators are retreating from overbought readings with uneven strength, but they remain within positive levels, indicating that sellers are sidelined1.
- Market Sentiment: The broader market sentiment is positive, with investors expecting a dovish tilt from the Federal Reserve, which could lead to a cut in interest rates. This positive sentiment could continue to support gold prices2.
- Resistance Levels: The recent high near $2,450 appears to be forming resistance. However, if XAU/USD breaks above this level, it could indicate a continuation of the uptrend2.
- Support and Resistance Levels: The price found support near the 50 EMA (2369.55) during previous pullbacks, indicating that this level is important for the short-term trend. Immediate support is at the 50 EMA, and stronger support is at the 200 EMA3.
Based on this analysis, it is likely that XAU/USD will experience a bullish move in the near term, with potential resistance at the $2,450 level. However, it is important to monitor market conditions and any changes in sentiment that could affect this outlook.
7/16/2024 01:30pm
