Daily Trade Ideas

GOLD Price Analysis and Trade Forecast: Daily Trading Signal

By LonghornFX Technical Analysis
Apr 19, 2024
Gold

Daily Price Outlook

- Gold currently trades at $2389.17, marking a 0.42% increase.

- Support and resistance levels delineate potential zones for price stabilization and growth.

- Technical indicators like RSI and EMA provide a positive outlook, supporting a bullish stance above the pivotal levels.

Gold’s current trajectory in the trading market exhibits a discernible uptick as it reaches a price of $2389.17, reflecting a 0.42% increase. Positioned advantageously above its pivot point at $2377.95, the precious metal shows potential for sustained bullish behavior. Immediate resistance is spotted at $2397.52, with subsequent thresholds at $2431.73 and $2461.89, each representing a critical juncture that could either propel or cap further gains depending on market responses.

On the flip side, Gold’s support levels are identified at $2355.45, $2327.10, and $2304.10. These figures not only suggest possible areas where price pullbacks might stabilize but also serve as indicators for the lower bounds of trading volatility. Should prices approach these levels, buyers might find compelling entry points, thereby injecting bullish sentiment back into the market.

Technical indicators enhance this analysis. The Relative Strength Index (RSI) stands at 56, signaling that Gold is experiencing bullish momentum, albeit without breaching overbought conditions. This implies a healthy upward movement with room for expansion. Furthermore, the 50-Day Exponential Moving Average (EMA) at $2366.43 offers substantial support, underpinning the current price level. This moving average acts as a baseline, affirming the bullish trend as long as prices remain above it.

The trading strategy in this environment would involve entering a buy position if Gold maintains its stance above $2378, aiming for a profit target at $2415. This approach is moderated with a stop loss at $2353 to mitigate potential downside risks.

GOLD Price Chart - Source: Tradingview
GOLD Price Chart - Source: Tradingview

GOLD (XAU/USD) - Trade Ideas

Entry Price – Buy Above 2378

Take Profit – 2415

Stop Loss – 2353

Risk to Reward – 1: 1.4

Profit & Loss Per Standard Lot = +$3700/ -$2500

Profit & Loss Per Mini Lot = +$370/ -$250

GOLD

Technical Analysis

GOLD Price Analysis – April 19, 2024

By LonghornFX Technical Analysis
Apr 19, 2024
Gold

Daily Price Outlook

Gold prices (XAU/USD) have extended their winning streak, reaching an intraday high of around the 2,417.79 level. The upward momentum gained traction as ongoing tensions in the Middle East bolstered Gold prices, with investors seeking safe-haven assets. Moreover, Federal Reserve officials highlighted ongoing inflation concerns and hinted at maintaining higher interest rates for longer. This could exert upward pressure on Gold prices due to its role as a hedge against inflation.

In contrast, the US dollar's bullish bias, driven by the increase in US Treasury yields and hawkish messages from Federal Reserve officials, generally supports the US Dollar but can exert downward pressure on Gold prices.

Federal Reserve's Stance and Economic Data Propel Gold Prices Amid Rate Cut Expectations

On the US side, Federal Reserve officials spoke about inflation and interest rates. Raphael Bostic from the Atlanta Fed said inflation is too high, so the Fed won’t lower rates yet. Meanwhile, John Williams from the New York Fed believes the Fed's policies are good for now, and they don't need to rush to lower rates. However, they might raise rates if necessary. The news, along with steady jobless claims, helped Gold prices rise further.

On the data front, the US Department of Labor reported that Initial Jobless Claims dropped to 212,000, lower than expected, while Continuing Jobless Claims slightly increased to 1.812 million. The Philadelphia Fed Manufacturing Index surged to 15.5, beating forecasts, but Existing Home Sales fell to 4.19 million, below expectations. The CME FedWatch Tool suggests a potential rate cut in September, with a 66% chance, down from yesterday's 71%.

Therefore, the Federal Reserve's stance on inflation and interest rates, along with positive jobless claims and mixed economic data, contributed to Gold prices rising further amidst expectations of a potential rate cut in September.

Escalating Middle East Tensions Drive Gold Prices Higher

On the geopolitical front, tensions have spiked in the Middle East as reports confirm Israeli strikes in Iran, leading to heightened risk aversion in financial markets. The situation intensified with explosions reported at Isfahan airport, although the cause remains unclear. Iranian officials warned of immediate and strong responses to any Israeli actions against Iran's interests, while Israeli officials indicated plans for retaliation. These developments, coupled with ongoing tensions in Gaza, have raised fears of further clashes in the region, impacting market sentiment negatively.

Therefore, the heightened geopolitical tensions in the Middle East, especially the Israeli strikes in Iran and the risk of further clashes, boosted safe-haven demand, contributing to a rise in Gold prices.

GOLD Price Chart - Source: Tradingview
GOLD Price Chart - Source: Tradingview

GOLD (XAU/USD) - Technical Analysis

Gold’s current trajectory in the trading market exhibits a discernible uptick as it reaches a price of $2389.17, reflecting a 0.42% increase. Positioned advantageously above its pivot point at $2377.95, the precious metal shows potential for sustained bullish behavior. Immediate resistance is spotted at $2397.52, with subsequent thresholds at $2431.73 and $2461.89, each representing a critical juncture that could either propel or cap further gains depending on market responses.

On the flip side, Gold’s support levels are identified at $2355.45, $2327.10, and $2304.10. These figures not only suggest possible areas where price pullbacks might stabilize but also serve as indicators for the lower bounds of trading volatility. Should prices approach these levels, buyers might find compelling entry points, thereby injecting bullish sentiment back into the market.

Technical indicators enhance this analysis. The Relative Strength Index (RSI) stands at 56, signaling that Gold is experiencing bullish momentum, albeit without breaching overbought conditions. This implies a healthy upward movement with room for expansion. Furthermore, the 50-Day Exponential Moving Average (EMA) at $2366.43 offers substantial support, underpinning the current price level. This moving average acts as a baseline, affirming the bullish trend as long as prices remain above it.

The trading strategy in this environment would involve entering a buy position if Gold maintains its stance above $2378, aiming for a profit target at $2415. This approach is moderated with a stop loss at $2353 to mitigate potential downside risks.

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GOLD

Daily Trade Ideas

GOLD Price Analysis and Trade Forecast: Daily Trading Signal

By LonghornFX Technical Analysis
Apr 18, 2024
Gold

Daily Price Outlook

- Gold prices exhibit resilience, currently trading at $2378.195, up by 0.77%.

- Key resistance and support levels identified at $2398/$2432/$2462 and $2334/$2304/$2277, respectively.

- Buy above $2370 with a target of $2395 and a stop loss at $2345 for potential gains.

Today’s trading session sees gold prices ascend to $2378.195, marking a 0.77% increase, reflecting a buoyant mood among investors. Gold continues to rally amidst an environment that favors safe-haven assets, with its current price navigating near the critical pivot point of $2413.

Resistance and Support Levels: Gold's immediate resistance lies at $2398, with further ceilings expected at $2432 and $2462. These thresholds represent potential turning points where sellers might regain control. Conversely, support levels are established at $2334, $2304, and $2277. A breach below these could signal a bearish turn, leading to further declines.

Technical Indicators: The Relative Strength Index (RSI) stands at 53, indicating a neutral market momentum with potential room for price increases if investor sentiment continues to improve. The 50-day Exponential Moving Average (EMA) at $2361 further supports the current bullish trend, suggesting that gold prices are well-positioned above this critical moving average, which historically acts as a dynamic support level.

Strategic Trading Levels: For traders considering entry into the market, buying above the $2370 mark could be strategic, targeting a take profit level at $2395. It's advisable to place a stop loss at $2345 to mitigate potential losses should the market retract against bullish predictions.

Conclusion: The outlook for gold remains cautiously optimistic as it flirts with resistance levels that could define the next trading phase. Traders should monitor these levels closely, as a breakout above $2398 could confirm continued bullish momentum, while failure to hold support might reverse gains.

GOLD Price Chart - Source: Tradingview
GOLD Price Chart - Source: Tradingview

GOLD (XAU/USD) - Trade Ideas

Entry Price – Buy Above 2370

Take Profit – 2395

Stop Loss – 2345

Risk to Reward – 1: 1

Profit & Loss Per Standard Lot = +$2500/ -$2500

Profit & Loss Per Mini Lot = +$250/ -$250

GOLD

Technical Analysis

GOLD Price Analysis – April 18, 2024

By LonghornFX Technical Analysis
Apr 18, 2024
Gold

Daily Price Outlook

Gold prices (XAU/USD) have extended their winning streak, remaining well bid around the $2,382 level as investors choose safe-haven assets due to increasing economic uncertainty worldwide. Meanwhile, ongoing tensions in the Middle East are seen as another key factor boosting the safe-haven gold price. Investors typically turn to gold during times of uncertainty. Moreover, hawkish comments from Federal Reserve Chair Jerome Powell have contributed to the bullish sentiment surrounding gold.

Federal Reserve Policy and Its Impact on Gold Prices

On the US front, the stance of Federal Reserve (Fed) policymakers regarding interest rates played a major role in Gold’s price. It should be noted that Federal Reserve (Fed) policymakers remains cautious, indicating that interest rates will likely stay higher for an extended period until upcoming data shows sustainable inflation at the desired rate of 2%. Therefore, this cautious approach adds to the appeal of Gold, as uncertainties in the economic landscape lead investors to seek refuge in safe-haven assets.

At the same time, Federal Reserve Chair Jerome Powell's recent comments on maintaining higher interest rates until inflation eases to 2% have bolstered the US dollar and bond yields. Therefore, the stronger US dollar exerts downward pressure on gold prices, as it becomes more expensive for investors holding other currencies to purchase gold.

Geopolitical Tensions Drive Gold Price Surge

On the geopolitical front, the long-lasting conflict in the Middle East have further bolstered the upticks in the safe-haven gold price. The recent attack by Iran on Israel and the threat of retaliatory measures have increased geopolitical risks, leading investors to seek refuge in assets considered safe, like gold.

However, the statements from key figures like Israel’s Prime Minister Benjamin Netanyahu, highlighting readiness to defend against threats, have further fueled these concerns. Consequently, investors turn to Gold as a traditional safe haven, driving up its price.

GOLD Price Chart - Source: Tradingview
GOLD Price Chart - Source: Tradingview

GOLD (XAU/USD) - Technical Analysis

Today’s trading session sees gold prices ascend to $2378.195, marking a 0.77% increase, reflecting a buoyant mood among investors. Gold continues to rally amidst an environment that favors safe-haven assets, with its current price navigating near the critical pivot point of $2413.

Resistance and Support Levels: Gold's immediate resistance lies at $2398, with further ceilings expected at $2432 and $2462. These thresholds represent potential turning points where sellers might regain control. Conversely, support levels are established at $2334, $2304, and $2277. A breach below these could signal a bearish turn, leading to further declines.

Technical Indicators: The Relative Strength Index (RSI) stands at 53, indicating a neutral market momentum with potential room for price increases if investor sentiment continues to improve. The 50-day Exponential Moving Average (EMA) at $2361 further supports the current bullish trend, suggesting that gold prices are well-positioned above this critical moving average, which historically acts as a dynamic support level.

Strategic Trading Levels: For traders considering entry into the market, buying above the $2370 mark could be strategic, targeting a take profit level at $2395. It's advisable to place a stop loss at $2345 to mitigate potential losses should the market retract against bullish predictions.

Conclusion: The outlook for gold remains cautiously optimistic as it flirts with resistance levels that could define the next trading phase. Traders should monitor these levels closely, as a breakout above $2398 could confirm continued bullish momentum, while failure to hold support might reverse gains.

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- GOLD Price Analysis – April 17, 2024

GOLD

Technical Analysis

GOLD Price Analysis – April 17, 2024

By LonghornFX Technical Analysis
Apr 17, 2024
Gold

Daily Price Outlook

Gold price (XAU/USD) has maintained its upward trend and hit all-time highs around the $2,392 level as investors turned to safe-haven assets like gold amidst economic uncertainty. Meanwhile, the ongoing tensions in the Middle East, coupled with mixed economic data and hawkish comments from Federal Reserve Chair Jerome Powell, have contributed to the bullish sentiment surrounding gold. Investors traditionally turn to gold during times of uncertainty and market volatility. Meanwhile, geopolitical tensions and concerns about inflation have fueled demand for the precious metal, pushing prices upwards.

Fed Chair Powell's Hawkish Stance and Mixed US Data: Impact on Gold

On the US front, the Federal Reserve Chair Jerome Powell's recent comments on maintaining higher interest rates until inflation eases to 2% have bolstered the US dollar and bond yields. However, this hawkish stance, combined with strong labor demand and mixed economic data, has created a more bullish environment for the US dollar. Therefore, the stronger US dollar typically exerts downward pressure on gold prices, as it becomes more expensive for investors holding other currencies to purchase gold.

Powell's comments and mixed US data have caused gold to struggle in maintaining its new all-time highs. Although geopolitical tensions offer some support, overall sentiment is cautious due to the Fed's restrictive policy framework.

Escalating Middle East Tensions and Gold's Safe-Haven Appeal

On the geopolitical front, the escalating tensions in the Middle East, particularly between Israel and Iran, have added to the safe-haven appeal of gold. However, the recent attack by Iran on Israel and the threat of retaliatory measures have heightened geopolitical risks, prompting investors to seek refuge in assets perceived as safe, such as gold.

According to recent reports, an Israeli air attack in Gaza destroyed a mosque and nearby homes, causing injuries to many, including children and women. Iran warned Israel of a strong response to any action against its missile attacks. Israel is urging 32 countries to impose sanctions on Iran's military and missile program.

Israeli settlers are causing violence in the West Bank, and more troops are deployed. Over 33,843 Palestinians have died, and 76,575 are wounded in Gaza from Israeli attacks since October 7.

GOLD Price Chart - Source: Tradingview
GOLD Price Chart - Source: Tradingview

GOLD (XAU/USD) - Technical Analysis

On April 17, gold prices observed a slight decline, settling at $2,377.20, down 0.31% from the previous trading session. The precious metal is currently trading below its pivot point of $2,389, signaling a cautious sentiment among investors. Technical resistance levels are set at $2,410, $2,432, and $2,454, which gold would need to surpass to regain a bullish stance. However, immediate support levels loom at $2,334, followed by $2,305 and $2,277, which could come into play if downward pressure continues.

The Relative Strength Index (RSI) stands at 54, indicating a neutral market momentum, neither overbought nor oversold at this juncture. Meanwhile, the 50-day Exponential Moving Average (EMA) at $2,352 supports the notion of a medium-term upward trend in gold prices. This is reinforced by the positioning of the 200 EMA, suggesting a sustained bullish sentiment over a longer period.

Given the current market setup, traders might consider a strategic approach: entering a sell position if gold prices fall below $2,390, aiming for a take profit at around $2,350, with a stop loss set at $2,410.

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GOLD

Daily Trade Ideas

GOLD Price Analysis and Trade Forecast: Daily Trading Signal

By LonghornFX Technical Analysis
Apr 17, 2024
Gold

Daily Price Outlook

- Gold price faces resistance at $2,410 with further barriers at $2,432 and $2,454; pivotal support starts at $2,334.

- Current RSI at 54 suggests neutral momentum; 50 EMA at $2,352 indicates underlying medium-term bullish trends.

- Recommended trading strategy: Sell below $2,390, targeting $2,350 with a stop loss at $2,410 to manage risk.

On April 17, gold prices observed a slight decline, settling at $2,377.20, down 0.31% from the previous trading session. The precious metal is currently trading below its pivot point of $2,389, signaling a cautious sentiment among investors. Technical resistance levels are set at $2,410, $2,432, and $2,454, which gold would need to surpass to regain a bullish stance. However, immediate support levels loom at $2,334, followed by $2,305 and $2,277, which could come into play if downward pressure continues.

The Relative Strength Index (RSI) stands at 54, indicating a neutral market momentum, neither overbought nor oversold at this juncture. Meanwhile, the 50-day Exponential Moving Average (EMA) at $2,352 supports the notion of a medium-term upward trend in gold prices. This is reinforced by the positioning of the 200 EMA, suggesting a sustained bullish sentiment over a longer period.

Given the current market setup, traders might consider a strategic approach: entering a sell position if gold prices fall below $2,390, aiming for a take profit at around $2,350, with a stop loss set at $2,410.

GOLD Price Chart - Source: Tradingview
GOLD Price Chart - Source: Tradingview

GOLD (XAU/USD) - Trade Ideas

Entry Price – Sell Below 2390

Take Profit – 2350

Stop Loss – 2410

Risk to Reward – 1: 2

Profit & Loss Per Standard Lot = +$4000/ -$2000

Profit & Loss Per Mini Lot = +$400/ -$200

GOLD

Daily Trade Ideas

GOLD Price Analysis and Trade Forecast: Daily Trading Signal

By LonghornFX Technical Analysis
Apr 16, 2024
Gold

Daily Price Outlook

- GOLD price falls 0.58% to $2371.99, with pivot point at $2351.

- Immediate resistance at $2410; support at $2334.

- Technical indicators signal potential selling trend; consider entry below $2389, with $2410 stop loss.

In today's technical outlook for GOLD on April 16th, the precious metal experienced a decline, reaching $2371.99, marking a decrease of 0.58%. Analyzing the chart timeframe, the pivot point is established at $2351, indicating a pivotal level for potential price movements. Immediate resistance levels are observed at $2410, followed by $2432 and $2454. Conversely, immediate support lies at $2334, with subsequent levels at $2305 and $2277.

Technical indicators highlight the significance of the 50-day Exponential Moving Average, currently at $2341. Notably, a double top pattern is forming, exerting resistance around $2389. This pattern, coupled with the presence of a doji candle below this level, suggests a potential shift towards a selling trend.

In conclusion, traders may consider a sell strategy below $2389, with a take-profit target at $2350 and a stop-loss set at $2410. These key price levels and technical insights provide valuable guidance for navigating gold's current market dynamics.

GOLD Price Chart - Source: Tradingview
GOLD Price Chart - Source: Tradingview

GOLD (XAU/USD) - Trade Ideas

Entry Price – Sell Below 2 389

Take Profit – 2 350

Stop Loss – 2 410

Risk to Reward – 1: 1.8

Profit & Loss Per Standard Lot = +$386/ -$213

Profit & Loss Per Mini Lot = +$38/ -$21

GOLD

Technical Analysis

GOLD Price Analysis – April 16, 2024

By LonghornFX Technical Analysis
Apr 16, 2024
Gold

Daily Price Outlook

Gold prices (XAU/USD) maintained their upward trend and remained well-bid around the $2,390 level. This upward trend can be attributed to the worsening Middle East crisis, which weighs on investors’ sentiment and benefits the metal. On the other hand, the reduced expectations of a Federal Reserve interest rate cut boosted the US dollar to its highest level so far this year, which limited the gains for the gold price. The broad-based US dollar hit to its highest level since early November due to expectations that the Federal Reserve (Fed) will delay cutting interest rates amid sticky inflation. This was seen as one of the key factor that kept the lid on any additional gains in the gold price.

Moving ahead, traders are keeping their eyes on US economic docket, which features the release of housing market data and Industrial Production figures. These, along with Fed's statements, will also be in spotlight.

Impact of Strong US Dollar and Retail Sales Data on Gold Prices

On the US front, the broad-based US dollar has been strengthening, reaching over a five-month peak due to ongoing concerns about the Middle East crisis and expectations that the Federal Reserve will maintain higher interest rates for a longer period. This has acted as a negative factor for the price of gold. Investors are delaying their predictions for the first Fed interest rate cut, now expecting it in September instead of June, due to worries about persistent inflation and a robust US economy.

On the data front, the release of upbeat US Retail Sales data for March has also impacted the gold price. On the data front, the US Census Bureau reported that Retail Sales increased by 0.7% month-on-month (MoM) in March. This surpassed expectations, which predicted a 0.3% rise, and also exceeded the previous month's growth of 0.9%, which was revised upward. The data, indicating a stronger-than-expected increase in retail sales, showed robust consumer spending and suggests support for inflation in the coming months.

Therefore, the robust US dollar is exerting downward pressure on gold prices, driven by concerns such as the Middle East crisis and expectations of prolonged higher interest rates by the Federal Reserve.

Impact of Middle East Geopolitical Tensions on Gold Prices

On the geopolitical front, Iran's attack on Israel over the weekend heightened tensions in the Middle East, increasing the risk of further conflicts. This situation benefited safe-haven assets like Gold, which saw a positive boost at the start of the new week. Israeli officials are considering retaliation, but the US made it clear that it won't join any offensive actions against Iran. As per the latest report, Iran fired over 300 projectiles at Israel in retaliation for an earlier strike. Israel hasn't responded yet, but tensions are high as both sides warn of stronger actions.

Therefore, the heightened tensions in the Middle East following Iran's attack on Israel led to a positive boost in the Gold price as investors sought safe-haven assets amid geopolitical uncertainty.

GOLD Price Chart - Source: Tradingview
GOLD Price Chart - Source: Tradingview

GOLD (XAU/USD) - Technical Analysis

In today's technical outlook for GOLD on April 16th, the precious metal experienced a decline, reaching $2371.99, marking a decrease of 0.58%. Analyzing the chart timeframe, the pivot point is established at $2351, indicating a pivotal level for potential price movements. Immediate resistance levels are observed at $2410, followed by $2432 and $2454. Conversely, immediate support lies at $2334, with subsequent levels at $2305 and $2277.

Technical indicators highlight the significance of the 50-day Exponential Moving Average, currently at $2341. Notably, a double top pattern is forming, exerting resistance around $2389. This pattern, coupled with the presence of a doji candle below this level, suggests a potential shift towards a selling trend.

In conclusion, traders may consider a sell strategy below $2389, with a take-profit target at $2350 and a stop-loss set at $2410. These key price levels and technical insights provide valuable guidance for navigating gold's current market dynamics.

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GOLD

Daily Trade Ideas

GOLD Price Analysis and Trade Forecast: Daily Trading Signal

By LonghornFX Technical Analysis
Apr 15, 2024
Gold

Daily Price Outlook

- Gold's resistance levels are set at $2,399, $2,421, and $2,450, with pivotal support at $2,368.

- Key technical indicators show a neutral RSI at 48 and support from a 50-day EMA of $2,330.

- Advised trading strategy involves selling below $2,362, with a take profit at $2,310 and a stop loss at $2,397.

Gold's trading session on April 15 saw a modest uptick, with the price closing at $2,346.70, a 0.70% increase from the previous day. The precious metal is hovering near a pivotal juncture at $2,368, serving as the day’s technical fulcrum. Should gold surpass this pivot point, it could encounter resistance at $2,399, with further hurdles at $2,421 and $2,450 potentially capping upward movements.

Conversely, immediate support lies at $2,327, with additional safety nets at $2,303 and $2,268. A breach of these levels could precipitate a more pronounced decline, signaling a potential shift in investor sentiment towards gold. The Relative Strength Index (RSI) stands at 48, indicating a neutral market that could swing in either direction based on external market stimuli.

The 50-day Exponential Moving Average (EMA) at $2,330 lends support slightly below the current price, suggesting a level of underlying market support. Notably, a breakout below the upward channel near $2,367 might trigger a selling trend, prompting a strategic sell below $2,362. Traders might consider taking profit at $2,310 and placing a stop loss at $2,397 to manage risk effectively.

GOLD Price Chart - Source: Tradingview
GOLD Price Chart - Source: Tradingview

GOLD (XAU/USD) - Trade Ideas

Entry Price – Sell Below 2362

Take Profit – 2310

Stop Loss – 2397

Risk to Reward – 1: 1.4

Profit & Loss Per Standard Lot = +$5200/ -$3500

Profit & Loss Per Mini Lot = +$520/ -$350

GOLD

Technical Analysis

GOLD Price Analysis – April 15, 2024

By LonghornFX Technical Analysis
Apr 15, 2024
Gold

Daily Price Outlook

Gold prices (XAU/USD) maintained their upward trend and regained positive traction, hitting an intraday high around the 2,372 level. The reason for this upward trend could be attributed to Iran’s attack on Israel over the weekend, which bolstered the safe-haven asset of gold prices. The attack increased tensions in the Middle East, making safe-haven precious metals more attractive. Additionally, the sluggish performance of the US dollar, backed by mixed factors, was seen as another key factor that kept gold prices higher. Moving ahead, traders are waiting for more clues from upcoming US data, specifically the Retail Sales and Empire State Manufacturing Index, to make informed decisions.

Geopolitical Tensions Drive Gold Price Boost

On the geopolitical front, Iran's attack on Israel over the weekend heightened tensions in the Middle East, increasing the risk of further conflicts. This situation benefited safe-haven assets like Gold, which saw a positive boost at the start of the new week. Israeli officials are considering retaliation, but the US made it clear that it won't join any offensive actions against Iran. As per the latest report, Iran fired over 300 projectiles at Israel in retaliation for an earlier strike. Israel hasn't responded yet, but tensions are high as both sides warn of stronger actions.

Therefore, the heightened tensions in the Middle East following Iran's attack on Israel led to a positive boost in the Gold price as investors sought safe-haven assets amid geopolitical uncertainty.

Challenges for Gold Amid Fed's Delayed Rate Hike and Strong Dollar

On the US front, investors are delaying their expectations for the first Federal Reserve rate hike to September due to persistent inflation concerns. They recently adjusted their predictions for the Federal Reserve's initial interest rate reduction, moving it from June to September. This change came after the release of US consumer inflation data, which exceeded expectations and hinted at stronger price pressures.

Consequently, investors now anticipate that the Fed may delay its intervention to address these inflationary trends until later in the year. This delay supports higher US Treasury bond yields, keeping the US Dollar strong and creating challenges for Gold.

Besides this, traders now expect fewer rate cuts in 2024 than the Fed's projections, further strengthening the US Dollar to its highest level in months. This hawkish stance from the Fed, coupled with a strong Dollar, could cap gains in Gold prices ahead of key US economic data releases. Therefore, the delay in the Federal Reserve rate hike, coupled with expectations of fewer rate cuts and a strong US Dollar, presents challenges for Gold as investors may hesitate to make aggressive trades.

GOLD Price Chart - Source: Tradingview
GOLD Price Chart - Source: Tradingview

GOLD (XAU/USD) - Technical Analysis

Gold's trading session on April 15 saw a modest uptick, with the price closing at $2,346.70, a 0.70% increase from the previous day. The precious metal is hovering near a pivotal juncture at $2,368, serving as the day’s technical fulcrum. Should gold surpass this pivot point, it could encounter resistance at $2,399, with further hurdles at $2,421 and $2,450 potentially capping upward movements.

Conversely, immediate support lies at $2,327, with additional safety nets at $2,303 and $2,268. A breach of these levels could precipitate a more pronounced decline, signaling a potential shift in investor sentiment towards gold. The Relative Strength Index (RSI) stands at 48, indicating a neutral market that could swing in either direction based on external market stimuli.

The 50-day Exponential Moving Average (EMA) at $2,330 lends support slightly below the current price, suggesting a level of underlying market support. Notably, a breakout below the upward channel near $2,367 might trigger a selling trend, prompting a strategic sell below $2,362. Traders might consider taking profit at $2,310 and placing a stop loss at $2,397 to manage risk effectively.

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GOLD