GOLD Price Analysis – June 4, 2024
Daily Price Outlook
Gold price (XAU/USD) failed to reverse its bearish trend and remained well supported around 2,333, hitting an intra-day low of 2,326. However, the cause for its downward trend can be linked to the risk-on market mood, which weakened Gold's safe-haven appeal.
However, the risk-on-market mood was being driven by the lower tensions in the Israel-Hamas conflict in the Middle East.
In contrast to this, the US dollar is under pressure due to rising projections of interest rate cuts from the Federal Reserve (Fed) later this year, as well as dismal US macro data on Monday. As a result, the bearish US dollar was considered as a crucial factor in limiting gold price losses.
Rate Cut Expectations & Bearish US Dollar Impact on Gold Prices
On the US front, the bond-based US dollar tried to recoup its losses but failed, remaining under pressure due to signs of lowering inflation and weak economic growth, which have heightened expectations of a rate cut this year from the Federal Reserve.
This perspective is supported by the unexpected decrease in the ISM Manufacturing PMI, which fell to 48.7 in May from 49.2 in April.
According to the CME FedWatch Tool, there is a more than 60% possibility that the Fed will cut interest rates by 25 basis points in September, which is why traders are increasingly betting on the move. This may help to limit losses in Gold prices by causing the US Dollar to fall to its lowest position since April 10.
According to data issued by the US Bureau of Economic Analysis, the Personal Consumption Expenditures (PCE) Price Index remained unchanged at 2.7% year on year, with the core gauge rising to 2.8%, in line with expectations.
Meanwhile, the biggest decline in new goods orders in nearly two years also impacted the US Institute for Supply Management's (ISM) Manufacturing PMI, which fell from 49.2 to 48.7 in May.
Eased Israel-Hamas Tensions & Its Impact on Gold Safe-Haven Appeal
Geopolitically, the appealing nature of silver as a safe haven has reduced as tensions between Israel and Hamas in the Middle East have eased. According to a Reuters story published on Monday, the US is asking for UN Security Council support for President Joe Biden's cease-fire proposal to end hostilities between Israel and Hamas militants in Gaza.
President Biden's suggestion for a ceasefire in Gaza was hesitantly accepted by Israeli Prime Minister Benjamin Netanyahu's cabinet on Sunday, suggesting a possible de-escalation in the region and influencing Gold long-standing safe-haven status in the financial markets.
GOLD (XAU/USD) - Technical Analysis
Gold is trading at $2,344.20, down 0.09% in the 4-hour timeframe. The pivot point at $2,352.26 serves as a critical level, dictating potential price movements. Immediate resistance levels are set at $2,364.03, $2,373.25, and $2,384.37. On the downside, immediate support is identified at $2,329.94, followed by $2,315.41 and $2,304.52.
Technical indicators suggest a cautious outlook. The Relative Strength Index (RSI) is at 50, indicating neutral market sentiment. The 50-day Exponential Moving Average (EMA) is positioned at $2,343.92, aligning closely with the current price, suggesting potential support around this level.
Given the current technical setup, the recommended strategy is to sell below $2,352, with a take-profit target at $2,330 and a stop loss at $2,365. The bearish sentiment is underscored by the market's inability to maintain levels above the pivot point, signaling potential further downside.
In conclusion, the outlook for gold remains bearish below $2,352, with immediate resistance levels offering potential barriers to upward movements. However, a break above this level could shift the bias towards a more bullish trend, warranting close monitoring of price action around these key levels.
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GOLD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Gold prices (XAU/USD) are trading at $2,344.20, down 0.09%, with a bearish outlook below the $2,352 pivot point.
- Immediate resistance levels are set at $2,364.03, $2,373.25, and $2,384.37, indicating potential upward barriers.
- Support levels at $2,329.94, $2,315.41, and $2,304.52 could serve as key areas for potential downward movements.
Gold is trading at $2,344.20, down 0.09% in the 4-hour timeframe. The pivot point at $2,352.26 serves as a critical level, dictating potential price movements.
Immediate resistance levels are set at $2,364.03, $2,373.25, and $2,384.37. On the downside, immediate support is identified at $2,329.94, followed by $2,315.41 and $2,304.52.
Technical indicators suggest a cautious outlook. The Relative Strength Index (RSI) is at 50, indicating neutral market sentiment. The 50-day Exponential Moving Average (EMA) is positioned at $2,343.92, aligning closely with the current price, suggesting potential support around this level.
Given the current technical setup, the recommended strategy is to sell below $2,352, with a take-profit target at $2,330 and a stop loss at $2,365. The bearish sentiment is underscored by the market's inability to maintain levels above the pivot point, signaling potential further downside.
In conclusion, the outlook for gold remains bearish below $2,352, with immediate resistance levels offering potential barriers to upward movements. However, a break above this level could shift the bias towards a more bullish trend, warranting close monitoring of price action around these key levels.
GOLD (XAU/USD) - Technical Analysis
Entry Price – Sell Below 2352
Take Profit – 2330
Stop Loss – 2365
Risk to Reward – 1: 1.6
Profit & Loss Per Standard Lot = +$2200/ -$1300
Profit & Loss Per Mini Lot = +$220/ -$130
GOLD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Gold price at $2,327.25, down 0.01%, with a bearish short-term outlook.
- Immediate resistance at $2,359.49, immediate support at $2,307.51.
- RSI at 39 and 50 EMA at $2,350.27 indicate potential for further decline.
Gold (XAU/USD) is trading at $2,327.25, slightly down by 0.01% in the 4-hour timeframe. The immediate technical outlook for gold shows it hovering just below the pivot point of $2,332.64, suggesting a cautious market sentiment.
Key price levels indicate that the immediate resistance is at $2,359.49, with subsequent resistance at $2,375.55 and $2,394.38. On the downside, immediate support is noted at $2,307.51, followed by $2,287.30 and $2,267.82, indicating potential areas where buying interest may emerge.
The Relative Strength Index (RSI) is at 39, suggesting that the market is currently not in the overbought or oversold territory but closer to the latter, hinting at potential for further declines. The 50-day Exponential Moving Average (EMA) stands at $2,350.27, which is above the current price, underscoring a bearish trend in the short term.
Given the technical indicators, gold appears to be under selling pressure. The recommendation for traders is to consider selling below $2,333, with a take profit target at $2,297 and a stop loss at $2,360.
GOLD (XAU/USD) - Technical Analysis
Entry Price – Sell Below 2333
Take Profit – 2297
Stop Loss – 2360
Risk to Reward – 1: 1.3
Profit & Loss Per Standard Lot = +$3600/ -$2700
Profit & Loss Per Mini Lot = +$360/ -$270
GOLD Price Analysis – June 3, 2024
Daily Price Outlook
Despite expectations of a potential Federal Reserve rate cut and a softer US dollar, the Gold price (XAU/USD) has been unable to reverse its downward trend and remains under pressure around the 2,318 mark, reaching a low of 2,314 during the day.
This decline could be linked to the risk-on sentiment in the market, buoyed by prospects of a ceasefire in Gaza. It should be noted that the recent positive outlook regarding a potential ceasefire arrangement for Gaza, as announced by US President Joe Biden, has dampened the demand for safe-haven assets such as Gold.
Looking ahead, traders are eagerly anticipating the release of significant US economic data this week, particularly the Nonfarm Payrolls (NFP) report scheduled for Friday.
Meanwhile, the decisions of central banks such as the Bank of Canada (BoC) on Wednesday and the European Central Bank (ECB) meeting on Thursday will also play a crucial role in influencing the Gold market.
Impact of US Dollar Weakness and Fed Rate Cut Speculation on Gold Prices
On the US front, the broad-based US dollar has been showing bearish trend and edged lower on the day due to increasing speculation that the Federal Reserve (Fed) might lower interest rates in the coming months. This perception is driven by indications of easing inflationary trends in the country.
However, the latest US inflation report, meeting projected figures, has added to the speculation of potential Fed rate cuts. Consequently, the US Dollar is depreciating, leading to a rise in the price of Gold as investors turn to alternative safe-haven options.
On the data front, the US Bureau of Economic Analysis (BEA) recently released figures showing a 0.3% increase in the Personal Consumption Expenditures (PCE) Price Index for April, in line with the anticipated 2.7% annual rate.
Additionally, the Core PCE Price Index, which excludes volatile components such as food and energy, also matched expectations with a yearly increase of 2.8%.
Therefore, the bearish trend in the US dollar and expectations of Fed rate cuts have bolstered Gold prices as investors seek safe-haven alternatives, mitigating deeper losses for Gold.
US President Biden's Gaza Ceasefire Plan Impact on Gold Prices
On the geopolitical front, US President Joe Biden has proposed a three-part plan to end the conflict in Gaza. The plan includes a six-week ceasefire with the withdrawal of IDF forces, a surge of humanitarian aid, and an exchange of hostages for Palestinian prisoners. Hamas has shown a positive view of the proposal.
The plan aims for a permanent cessation of hostilities and a major reconstruction plan for Gaza, with international assistance. However, the negotiations between phases one and two are expected to be challenging, but the US push for a permanent ceasefire marks a significant concession to restart negotiations.
As a result, traders are exercising caution and refraining from making strong bullish bets on commodities, including gold, due to the optimism surrounding President Biden's new ceasefire plan for Gaza. This cautious approach is likely contributing to a drop in gold prices today, as investors are not rushing to buy gold.
Therefore, the positive news of a new ceasefire plan for Gaza by US President Joe Biden has undermined the safe-haven appeal of gold, leading to a neutral or slightly negative impact on its prices as traders adopt a less bullish stance.
GOLD (XAU/USD) - Technical Analysis
Gold (XAU/USD) is trading at $2,327.25, slightly down by 0.01% in the 4-hour timeframe. The immediate technical outlook for gold shows it hovering just below the pivot point of $2,332.64, suggesting a cautious market sentiment.
Key price levels indicate that the immediate resistance is at $2,359.49, with subsequent resistance at $2,375.55 and $2,394.38. On the downside, immediate support is noted at $2,307.51, followed by $2,287.30 and $2,267.82, indicating potential areas where buying interest may emerge.
The Relative Strength Index (RSI) is at 39, suggesting that the market is currently not in the overbought or oversold territory but closer to the latter, hinting at potential for further declines. The 50-day Exponential Moving Average (EMA) stands at $2,350.27, which is above the current price, underscoring a bearish trend in the short term.
Given the technical indicators, gold appears to be under selling pressure. The recommendation for traders is to consider selling below $2,333, with a take profit target at $2,297 and a stop loss at $2,360.
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GOLD Price Analysis – May 31, 2024
Daily Price Outlook
Gold prices (XAU/USD) maintained its upward trend and remained well bid around around the 2,343.38 level and reaching an intraday high of 2,347.80. However, the ongoing bullish trend can be largely attributed to a weakening US dollar, which declined following disappointing US GDP figures. These figures led traders to speculate that the Federal Reserve might cut interest rates this year, adding pressure on the US dollar and consequently driving up gold prices.
Additionally, geopolitical risks and conflicts in the Middle East were another significant factor pushing up the price of gold, which is traditionally viewed as a safe-haven asset. Looking ahead, traders will focus on the US April Core Personal Consumption Expenditures Price Index (Core PCE), anticipated to reflect a 0.3% monthly rise and a 2.8% year-over-year increase for April.
US Dollar Weakness and Economic Uncertainty Support Gold Prices
On the US front, the broad-based US dollar US dollar has been flashing red, gradually declining as traders speculate on the likelihood of the Federal Reserve reducing interest rates this year, prompted by lackluster US GDP data. Notably, Chicago Fed President Austan Goolsbee has expressed worries about housing inflation despite acknowledging a robust labor market. Conversely, Atlanta Fed President Raphael Bostic believes a rate cut in July is improbable due to decelerating inflation. Meanwhile, New York Fed President John Williams remains optimistic that inflation will ease in the latter part of the year.
On the data front, the second estimate of US GDP indicated that the economy expanded at an annualized pace of 1.3% in Q1. This figure marked a decline from the earlier reading of 1.6% but aligned with market forecasts. Concurrently, US weekly Initial Jobless Claims for the week ending May 25 rose marginally to 219K from 216K, slightly surpassing the market consensus of 218K.
Therefore, the weakening US dollar, coupled with concerns over rate cuts and mixed economic data, supports gold prices amid uncertain market sentiment.
Geopolitical Tensions Drive Gold Prices Higher
On the geopolitical front, the long-lasting conflicts in the Middle East, particularly involving Israel and Gaza, were seen as another key factor that kept the gold price higher as investors sought safe-haven assets. Israel's recent assertion of control over Gaza's land border with Egypt will likely weaken its relationship with Egypt, adding to regional tensions.
UN experts are urging for decisive international action, like sanctions and an arms embargo, against Israel following its assault on Rafah in Gaza. Despite the US State Department downplaying it, the attack caused casualties, displacing many. Save the Children reported over 60 deaths, including women and children, in attacks on supposed safe zones. UN agencies highlighted the dire situation, with thousands fleeing the ongoing violence in Rafah.
These geopolitical risks increase uncertainty in financial markets, driving investors toward assets like gold, which is traditionally considered a safe haven.
GOLD (XAU/USD) - Technical Analysis
Gold (XAU/USD) is currently priced at $2340.955, down 0.04%, indicating a slight decline in market sentiment.
The pivot point, marked by the green line, stands at $2351.55. Immediate resistance levels are at $2367.11, $2380.52, and $2392.98. On the downside, immediate support is found at $2326.59, with further supports at $2307.51 and $2286.08.
The 50-day Exponential Moving Average (EMA) is at $2360.85, suggesting potential resistance. The Relative Strength Index (RSI) is at 43, indicating a moderately bearish momentum. These indicators highlight that gold is currently facing selling pressure below the pivot point of $2351.55.
For traders looking to capitalize on this trend, an entry price is recommended below $2350, with a take profit target set at $2325. A stop loss should be placed at $2366 to manage risk. In conclusion, Gold (XAU/USD) is under pressure below the pivot point of $2351.55, with technical indicators supporting a bearish outlook.
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GOLD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Gold at $2340.955, down 0.04%, under selling pressure below $2351.55 pivot.
- Key resistance levels: $2367.11, $2380.52, and $2392.98; support at $2326.59, $2307.51.
- RSI at 43, 50 EMA at $2360.85; bearish sentiment persists, sell below $2350 recommended.
Gold (XAU/USD) is currently priced at $2340.955, down 0.04%, indicating a slight decline in market sentiment.
The pivot point, marked by the green line, stands at $2351.55. Immediate resistance levels are at $2367.11, $2380.52, and $2392.98. On the downside, immediate support is found at $2326.59, with further supports at $2307.51 and $2286.08.
The 50-day Exponential Moving Average (EMA) is at $2360.85, suggesting potential resistance. The Relative Strength Index (RSI) is at 43, indicating a moderately bearish momentum. These indicators highlight that gold is currently facing selling pressure below the pivot point of $2351.55.
For traders looking to capitalize on this trend, an entry price is recommended below $2350, with a take profit target set at $2325. A stop loss should be placed at $2366 to manage risk. In conclusion, Gold (XAU/USD) is under pressure below the pivot point of $2351.55, with technical indicators supporting a bearish outlook.
GOLD (XAU/USD) - Technical Analysis
Entry Price – Sell Below 2350
Take Profit – 2325
Stop Loss – 2366
Risk to Reward – 1: 1.5
Profit & Loss Per Standard Lot = +$2500/ -$1600
Profit & Loss Per Mini Lot = +$250/ -$160
GOLD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Gold (XAU/USD) trades at $2,328.880, down 0.05%, with key support at $2,307.15.
- Immediate resistance levels at $2,351.74, $2,380.52, and $2,392.98 mark potential upward targets.
- RSI at 33 suggests oversold conditions, with 50 EMA at $2,370.91 providing resistance.
Gold (XAU/USD) is currently trading at $2,328.880, experiencing a slight decline of 0.05%. The pivot point at $2,350.00 serves as a crucial level for determining the next market direction.
Immediate resistance is found at $2,351.74, followed by $2,380.52 and $2,392.98. On the downside, immediate support is seen at $2,307.15, with further support at $2,291.62 and $2,277.79.
Technical indicators reveal the Relative Strength Index (RSI) at 33, indicating oversold conditions. The 50-day Exponential Moving Average (EMA) is positioned at $2,370.91, suggesting potential resistance if the price attempts to rebound.
Given the current setup, the outlook for gold appears bearish below the pivot point of $2,350.00. However, if the price manages to stay above $2,325, it could signal a potential buying opportunity with a take profit target of $2,350 and a stop loss at $2,315.
This strategy aims to capitalize on potential short-term rebounds while maintaining a cautious approach.
GOLD (XAU/USD) - Technical Analysis
Entry Price – Buy Above 2325
Take Profit – 2350
Stop Loss – 2315
Risk to Reward – 1: 2.5
Profit & Loss Per Standard Lot = +$2500/ -$1000
Profit & Loss Per Mini Lot = +$250/ -$100
GOLD Price Analysis – May 30, 2024
Daily Price Outlook
Gold prices have been on a downward trend, recently trading around the $2,333.44 level, hitting an intra-day low of $2,322.73. This decline is mainly due to a combination of factors, including a bullish US dollar, a hawkish Fed stance, and cautious investor sentiment ahead of key economic data releases.
However, geopolitical tensions in the Middle East offer some support to gold, highlighting its role as a safe-haven asset in times of uncertainty.
Moving ahead, Investors seem to hesitate to place any strong bids ahead of important US economic data releases, including the US GDP Annualized data for Q1 and the Core Personal Consumption Expenditures (PCE) Price Index.
Hawkish Remarks from Fed Officials Boost US Dollar and Treasury Yields
Several Federal Reserve officials have recently made hawkish comments, indicating that more interest rate hikes could be on the way. For example, Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, hinted that the option of increasing rates is still on the table.
Similarly, Atlanta Fed President Raphael Bostic expressed concerns about the inflationary trend, suggesting that the path to achieving a 2% inflation rate is not yet clear.
These remarks have fueled risk aversion among investors, supporting the US dollar and US Treasury yields. Hence, the stronger US dollar and higher yields generally make gold less appealing because gold does not offer any interest or dividends.
Geopolitical Tensions in the Middle East Could Limit Gold’s Losses
Despite the downward pressure on gold prices, escalating geopolitical tensions in the Middle East could limit further losses. Gold is often considered a safe-haven asset, meaning it tends to attract investment during times of geopolitical uncertainty.
Recently, the Israeli military announced it had achieved "operational control" over the Philadelphi Corridor, a strategic strip of land along the border between Gaza and Egypt. Such developments can increase demand for gold as investors seek safety from potential instability and conflict.
Therefore, while the gold market is currently facing headwinds from a strong US dollar and high Treasury yields, ongoing geopolitical tensions might provide some support and prevent significant declines.
GOLD (XAU/USD) - Technical Analysis
Gold (XAU/USD) is currently trading at $2,328.880, experiencing a slight decline of 0.05%. The pivot point at $2,350.00 serves as a crucial level for determining the next market direction.
Immediate resistance is found at $2,351.74, followed by $2,380.52 and $2,392.98. On the downside, immediate support is seen at $2,307.15, with further support at $2,291.62 and $2,277.79.
Technical indicators reveal the Relative Strength Index (RSI) at 33, indicating oversold conditions. The 50-day Exponential Moving Average (EMA) is positioned at $2,370.91, suggesting potential resistance if the price attempts to rebound.
Given the current setup, the outlook for gold appears bearish below the pivot point of $2,350.00. However, if the price manages to stay above $2,325, it could signal a potential buying opportunity with a take profit target of $2,350 and a stop loss at $2,315.
This strategy aims to capitalize on potential short-term rebounds while maintaining a cautious approach.
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GOLD Price Analysis – May 29, 2024
Daily Price Outlook
Gold price (XAU/USD) halted its previous upward rally and dipped around the $2,348 mark, hitting the intraday low of $2,346.
However, the sharp decline in the gold price might be attributed to the bullish US dollar, which gained traction in the wake of recent hawkish remarks from various Federal Reserve officials and better-than-expected economic data from the US.
This upbeat data and hawkish stance lowered expectations of a possible Fed interest rate cut in September and bolstered the US Dollar.
On the flip side, the ongoing tensions between Israel and Hamas, coupled with global disapproval of airstrikes, create market instability. This, in turn, fuels a surge in demand for safe-haven assets such as gold, aiding in limiting the downward pressure on gold prices.
Moving forward, market participants are closely monitoring the upcoming release of the Fed's Beige Book report and an upcoming speech by John Williams scheduled for Wednesday.
Additionally, all eyes are on the upcoming data, the US Core Personal Consumption Expenditures Price Index (Core PCE), which is scheduled for Friday.
Federal Reserve's Hawkish Stance and Consumer Confidence Impact on Gold Price
On the US front, the broad-based US dollar edged higher on the day, thanks to hawkish comments from Federal Reserve officials and better-than-expected economic data. This lowers the probability of a Fed rate cut in September, strengthening the US dollar and putting pressure on the Gold price.
Fed Governor Michelle Bowman expressed support for a slower pace of reducing stimulus, indicating that she is in favor of a more gradual approach to tapering the central bank's asset purchases or other forms of monetary stimulus.
On the other hand, Fed Minneapolis President Neel Kashkari emphasized the importance of waiting for significant progress on inflation before considering any rate cuts. He anticipates that there may be at most two interest rate cuts in 2024, suggesting a cautious stance on adjusting monetary policy amid the economic landscape.
On the data front, the latest Consumer Confidence figures for May, released by the Conference Board on Tuesday, revealed a modest uptick. The index climbed to 102.0 from April's 97.0, exceeding the projected 95.9. This uptrend suggests a strengthening sense of optimism among consumers, potentially bolstering both economic activity and market outlook.
Hence, the hawkish Fed comments and strong economic data lifted the US dollar, reducing expectations of a Fed rate cut, thus pressuring gold prices downward.
Escalating Middle East Tensions Boost Gold Prices
Amid increasing geopolitical tensions in the Middle East, investors are turning to safe-haven assets such as gold, which helps in limiting its downward trend on Gold price.
Nevertheless, the recent developments include reported Israeli military actions targeting a tent camp within a designated "safe zone" near Rafah, leading to civilian casualties and drawing international attention and apprehension.
However, the situation in Rafah prompted an urgent session of the UN Security Council, responding to Israel's reported ground intervention. Meanwhile, Spain, Ireland, and Norway have formally acknowledged the state of Palestine.
Despite humanitarian assistance efforts, the crisis persists, with a significant number of people displaced and casualties rising in Gaza amid the ongoing conflict between Israel and Hamas.
As a result, the increasing tensions in the Middle East prompt investors to seek refuge in safe-haven assets like gold, providing support to its price amid geopolitical instability.
GOLD (XAU/USD) - Technical Analysis
Gold (XAU/USD) is currently trading at $2357.540, reflecting a decline of 0.14% in the latest session. On the 4-hour chart, the pivot point is positioned at $2380.00, which serves as a crucial level for determining the future direction of the market.
Immediate resistance levels are identified at $2380.52, $2392.98, and $2410.52. On the downside, immediate support is found at $2351.93, followed by $2340.03 and $2326.60.
The Relative Strength Index (RSI) is at 49, indicating a neutral market sentiment with a slight bearish bias.
The 50-day Exponential Moving Average (EMA) is currently positioned at $2378.86, suggesting a significant resistance level near the current price.
The recent decline in gold prices can be attributed to a modest rebound in the US Dollar, driven by stronger-than-expected US economic data and hawkish remarks from several Federal Reserve officials.
These factors have dampened expectations of a Fed rate cut in September, boosting the US Dollar and exerting downward pressure on gold prices. However, ongoing geopolitical tensions and central bank demand for gold continue to provide some support for the precious metal.
The technical outlook for gold indicates that a bullish trend may be initiated if the price breaks above the pivot point of $2380.00. This could lead to a potential rise towards the immediate resistance levels at $2380.52 and beyond.
Conversely, if gold prices fall below the immediate support level of $2351.93, further declines towards $2340.03 and $2326.60 are likely.
In conclusion, the outlook for gold remains cautious. The entry price for a potential buy position is above $2350, with a take profit target at $2380 and a stop loss at $2335.
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GOLD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Gold prices are currently trading at $2357.540, down 0.14% in the latest session.
- Immediate resistance levels are at $2380.52, $2392.98, and $2410.52, while support levels are at $2351.93, $2340.03, and $2326.60.
- RSI at 49 and 50 EMA at $2378.86 suggest neutral to bearish market sentiment.
Gold (XAU/USD) is currently trading at $2357.540, reflecting a decline of 0.14% in the latest session. On the 4-hour chart, the pivot point is positioned at $2380.00, which serves as a crucial level for determining the future direction of the market.
Immediate resistance levels are identified at $2380.52, $2392.98, and $2410.52. On the downside, immediate support is found at $2351.93, followed by $2340.03 and $2326.60.
The Relative Strength Index (RSI) is at 49, indicating a neutral market sentiment with a slight bearish bias.
The 50-day Exponential Moving Average (EMA) is currently positioned at $2378.86, suggesting a significant resistance level near the current price.
The recent decline in gold prices can be attributed to a modest rebound in the US Dollar, driven by stronger-than-expected US economic data and hawkish remarks from several Federal Reserve officials.
These factors have dampened expectations of a Fed rate cut in September, boosting the US Dollar and exerting downward pressure on gold prices. However, ongoing geopolitical tensions and central bank demand for gold continue to provide some support for the precious metal.
The technical outlook for gold indicates that a bullish trend may be initiated if the price breaks above the pivot point of $2380.00. This could lead to a potential rise towards the immediate resistance levels at $2380.52 and beyond.
Conversely, if gold prices fall below the immediate support level of $2351.93, further declines towards $2340.03 and $2326.60 are likely.
In conclusion, the outlook for gold remains cautious. The entry price for a potential buy position is above $2350, with a take profit target at $2380 and a stop loss at $2335.
GOLD (XAU/USD) - Technical Analysis
Entry Price – Buy Above 2350
Take Profit – 2380
Stop Loss – 2335
Risk to Reward – 1: 2
Profit & Loss Per Standard Lot = +$3000/ -$1500
Profit & Loss Per Mini Lot = +$300/ -$150