Technical Analysis

GOLD Price Analysis – April 02, 2024

By LonghornFX Technical Analysis
Apr 2, 2024
Gold

Daily Price Outlook

Gold price (XAU/USD) has maintained its bullish rally and hit the intraday high of $2,259. This surge marks the sixth consecutive day of gains for the precious metal, as it attracts investors seeking safe-haven assets amidst global uncertainties. The reason behind Gold's upward trend is the heightened geopolitical tensions and uncertainty surrounding the Federal Reserve's interest rate cuts. Moving ahead, traders seem cautious to place any strong position as they await key releases such as JOLTS Job Openings and Factory Orders, coupled with speeches by influential Federal Open Market Committee (FOMC) members.

Geopolitical Tensions Impacting Safe-Haven Gold Price (XAU/USD) Price

On the geopolitical front, the ongoing tensions in the Middle East did not show any sign of slowing down. In fact, the situation in the Middle East has become more tense recently due to reports of an Israeli attack near Iran's embassy in Syria's capital. The escalating tensions in the Middle East, particularly the recent Israeli strike near Iran's embassy in Syria, have heightened market caution and increased demand for safe-haven assets like Gold. Therefore, this uncertainty and risk aversion among investors contributes to the support of XAU/USD prices.

Impact of Upbeat US Manufacturing Data on Gold Price and USD

On the other hand, the upbeat US manufacturing data released on Monday has shifted investor expectations regarding a June Federal Reserve rate cut. This shift has resulted in higher US Treasury bond yields, boosting the US Dollar to its highest level since February 14. Hence, the rise in US Treasury bond yields and the strengthening US Dollar following upbeat manufacturing data have the potential to cap gains in the Gold price as the stronger dollar typically makes Gold more expensive for investors holding other currencies, reducing demand and limiting price increases for the precious metal.

Impact of Upcoming Tuesday's US Economic Docket on Gold Price

Looking ahead, investors are keeping their eyes on the US economic docket, which includes key releases such as JOLTS Job Openings and Factory Orders. In the meantime, the speeches by influential Federal Open Market Committee (FOMC) members are expected to drive USD demand and provide fresh impetus to the market. Therefore, the outcome of these events will likely have a significant impact on Gold prices.

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

GOLD (XAU/USD) - Technical Analysis

The precious metal, Gold (XAU/USD), is currently charting a course of moderate ascent, trading up by 0.23% at a rate of $2,251.445. A pivotal juncture has been identified at the $2,266 level, indicated by the session's green pivot point line. This price serves as a threshold for determining Gold's immediate trajectory. Resistance points are arrayed above this marker at $2,285, $2,303, and $2,319, outlining potential ceilings that Gold's value ascent may encounter.

Conversely, support levels for Gold are ascertained at $2,249, with subsequent layers at $2,238 and $2,220, providing floors that could curtail any pullbacks in price. Technical indicators offer further insights; the Relative Strength Index (RSI) is at 63, signifying a market with some bullish momentum yet not quite reaching overbought conditions. Meanwhile, the 50-Day Exponential Moving Average (EMA) stands at $2,210, reinforcing a positive trend.

A closer examination of Gold’s recent movements reveals it has completed a 50% Fibonacci retracement at the $2,238 level, suggestive of a potential pivot for price direction. At present, Gold’s price fluctuates within a constricted range, oscillating between $2,265 and $2,250, indicating a phase of consolidation. A breakout from this bandwidth will likely dictate the next phase of significant price movements.

In summation, the technical perspective on Gold is leaning towards bullishness, particularly if the price maintains above the key $2,250 threshold. Trading strategy should consider an entry point for buying above $2,250, targeting profits around the $2,270 mark, while placing stop losses at $2,240 to mitigate downside risks.

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GOLD

Daily Trade Ideas

GOLD Price Analysis and Trade Forecast: Daily Trading Signal

By LonghornFX Technical Analysis
Apr 2, 2024
Gold

Daily Price Outlook

- Gold (XAU/USD) trends upward, trading at $2,251.445 with a pivot point at $2,266.

- Resistance outlined at $2,285, $2,303, and $2,319, with support at $2,249 and below.

- Indicators like RSI (63) and 50 EMA ($2,210) suggest bullish momentum.

The precious metal, Gold (XAU/USD), is currently charting a course of moderate ascent, trading up by 0.23% at a rate of $2,251.445. A pivotal juncture has been identified at the $2,266 level, indicated by the session's green pivot point line. This price serves as a threshold for determining Gold's immediate trajectory. Resistance points are arrayed above this marker at $2,285, $2,303, and $2,319, outlining potential ceilings that Gold's value ascent may encounter.

Conversely, support levels for Gold are ascertained at $2,249, with subsequent layers at $2,238 and $2,220, providing floors that could curtail any pullbacks in price. Technical indicators offer further insights; the Relative Strength Index (RSI) is at 63, signifying a market with some bullish momentum yet not quite reaching overbought conditions. Meanwhile, the 50-Day Exponential Moving Average (EMA) stands at $2,210, reinforcing a positive trend.

A closer examination of Gold’s recent movements reveals it has completed a 50% Fibonacci retracement at the $2,238 level, suggestive of a potential pivot for price direction. At present, Gold’s price fluctuates within a constricted range, oscillating between $2,265 and $2,250, indicating a phase of consolidation. A breakout from this bandwidth will likely dictate the next phase of significant price movements.

In summation, the technical perspective on Gold is leaning towards bullishness, particularly if the price maintains above the key $2,250 threshold. Trading strategy should consider an entry point for buying above $2,250, targeting profits around the $2,270 mark, while placing stop losses at $2,240 to mitigate downside risks.

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

GOLD (XAU/USD) - Trade Ideas

Entry Price – Buy Above 2250

Take Profit – 2270

Stop Loss – 2240

Risk to Reward – 1: 2

Profit & Loss Per Standard Lot = +$2000/ -$1000

Profit & Loss Per Mini Lot = +$200/ -$100

GOLD

Technical Analysis

GOLD Price Analysis – April 01, 2024

By LonghornFX Technical Analysis
Apr 1, 2024
Gold

Daily Price Outlook

Gold prices (XAU/USD) have maintained an upward trend and hitting an intraday high near the $2,265 level. However, the reason behind this surge is increasing speculation about a Federal Reserve rate cut in June. This sentiment is fueled by the latest US inflation data, particularly the moderate increase in the Personal Consumption Expenditures (PCE) Price Index in February, which rose to 2.5% annually. This reinforces expectations that the Fed may cut interest rates to counter inflationary pressures.

Furthermore, the geopolitical tensions, such as the Russia-Ukraine conflict and conflicts in the Middle East, have increased uncertainties in global markets. During such times, investors often turn to safe-haven assets like gold, boosting demand and pushing prices higher.

Rising Bets for a June Fed Rate Cut and Impact on Gold Price

On the US front, the market is increasingly pricing in the possibility of a June interest rate cut by the Federal Reserve in the US. This sentiment was reinforced by Fed Chair Jerome Powell's remarks on the latest inflation data aligning with the Fed's objectives. According to the CME Group's FedWatch Tool, there's approximately a 70% probability of a rate cut at the June monetary policy meeting.

Therefore, the anticipation of lower interest rates tends to weaken the US Dollar, making gold more attractive to investors as it becomes cheaper to buy.

Risk-On Mood and Modest USD Uptick Impact on Gold Price

Despite the risk-on sentiment in the market, supported by upbeat Chinese manufacturing data and a modest uptick in the US Dollar, gold prices have remained resilient. However, the positive Chinese data, indicating an expansion in the manufacturing sector after six months, initially boosted risk-on market sentiment. In contrast to this, ongoing geopolitical tensions and inflation concerns have overshadowed this optimism, leading investors to seek safe-haven assets like gold.

Hence, the modest uptick in the US Dollar could cap gains for gold, but the risk factors and expectations of a Fed rate cut have outweighed this effect. Investors are watching upcoming economic data like the US ISM Manufacturing PMI for clues about the economy and possible changes in monetary policy.

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

GOLD (XAU/USD) - Technical Analysis

Gold’s performance on April 1st exhibited a notable rise, closing at $2,258.75, marking a 1.23% increase. This upward trajectory situates gold above the pivotal $2,240, indicating a persistent bullish momentum. Resistance is eyed at $2,285, $2,303, and $2,319; breaching these could foster further gains. Conversely, support positions at $2,249, $2,238, and $2,220 provide potential fallback points.

The technical landscape reveals an RSI at 81, suggesting an overbought market, which could precede a pullback. A notable Doji candlestick below $2,266 might signal a forthcoming market sentiment reversal, potentially initiating a bearish phase. Despite the bullish "three white soldiers" pattern, the market's overbought state hints at a forthcoming correction.

The 50-day EMA at $2,183 solidifies the gold's bullish trend, yet market players should stay vigilant of upcoming economic data and Fed communications, which could significantly sway market directions. The upcoming U.S. ISM Manufacturing PMI and Fed members' speeches will provide insights into economic health and monetary policy, influencing market dynamics.

Given these factors, a cautious trading strategy would be advisable. Considering selling below $2,265, targeting a take-profit at the pivot of $2,240, and setting a stop-loss at $2,285 could align with the current market's technical and fundamental outlook.

In summary, while gold maintains a bullish stance above $2,240, the heightened RSI and specific candlestick patterns suggest a potential near-term correction.

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GOLD

Daily Trade Ideas

GOLD Price Analysis and Trade Forecast: Daily Trading Signal

By LonghornFX Technical Analysis
Apr 1, 2024
Gold

Daily Price Outlook

- Gold's surge to $2,258.75 underscores a bullish momentum, challenging the resistance at $2,285.

- Overbought RSI at 81 and the Doji pattern signal potential market recalibration.

- Strategic trades may consider a sell below $2,265, targeting $2,240, with a stop loss at $2,285.

Gold’s performance on April 1st exhibited a notable rise, closing at $2,258.75, marking a 1.23% increase. This upward trajectory situates gold above the pivotal $2,240, indicating a persistent bullish momentum. Resistance is eyed at $2,285, $2,303, and $2,319; breaching these could foster further gains. Conversely, support positions at $2,249, $2,238, and $2,220 provide potential fallback points.

The technical landscape reveals an RSI at 81, suggesting an overbought market, which could precede a pullback. A notable Doji candlestick below $2,266 might signal a forthcoming market sentiment reversal, potentially initiating a bearish phase. Despite the bullish "three white soldiers" pattern, the market's overbought state hints at a forthcoming correction.

The 50-day EMA at $2,183 solidifies the gold's bullish trend, yet market players should stay vigilant of upcoming economic data and Fed communications, which could significantly sway market directions. The upcoming U.S. ISM Manufacturing PMI and Fed members' speeches will provide insights into economic health and monetary policy, influencing market dynamics.

Given these factors, a cautious trading strategy would be advisable. Considering selling below $2,265, targeting a take-profit at the pivot of $2,240, and setting a stop-loss at $2,285 could align with the current market's technical and fundamental outlook.

In summary, while gold maintains a bullish stance above $2,240, the heightened RSI and specific candlestick patterns suggest a potential near-term correction.

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

GOLD (XAU/USD) - Trade Ideas

Entry Price – Sell Below 2265

Take Profit – 2240

Stop Loss – 2285

Risk to Reward – 1: 1.2

Profit & Loss Per Standard Lot = +$2500/ -$2000

Profit & Loss Per Mini Lot = +$250/ -$200

GOLD

Daily Trade Ideas

GOLD Price Analysis and Trade Forecast: Daily Trading Signal

By LonghornFX Technical Analysis
Mar 29, 2024
Gold

Daily Price Outlook

- Gold Breaks Pivot: Surpassed $2221.05 pivot, indicating a strong bullish trend with potential to test higher resistances.

- Technical Indicators Align: RSI at 76 and rising 50 EMA confirm the robust upward momentum in gold prices.

- Strategic Trading Levels: Advised entry above $2225 with targets at $2245, cushioned by a stop loss at $2210, aligning with key technical levels.

On March 29, Gold (XAU/USD) experienced a notable increase, reaching $2233.12, a 1.74% gain, reflecting a robust bullish momentum in the market. The asset's movement has surpassed the pivot point at $2221.05, indicating potential for further upward trends. Key resistance levels are identified at $2243.71, $2259.74, and $2277.41, which could act as targets for continued bullish runs. Conversely, support levels are established at $2202.92, $2184.86, and $2165.23, providing potential fallback points should the market retract.

The technical indicators fortify the bullish outlook; the Relative Strength Index (RSI) at 76 suggests an overbought condition, signaling strong buying interest. Meanwhile, the 50-day Exponential Moving Average (EMA) at $2177.63 underscores a significant upward trend over the medium term, further corroborating the bullish sentiment in the market.

Considering these factors, the technical outlook for Gold suggests a strategic entry price for buying above $2225, with a take profit target at $2245, and a stop loss set at $2210 to manage risk.

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

GOLD (XAU/USD) - Trade Ideas

Entry Price – Buy Above 2225

Take Profit – 2245

Stop Loss – 2210

Risk to Reward – 1: 1.3

Profit & Loss Per Standard Lot = +$2000/ -$1500

Profit & Loss Per Mini Lot = +$200/ -$150

GOLD

Technical Analysis

GOLD Price Analysis – March 29, 2024

By LonghornFX Technical Analysis
Mar 29, 2024
Gold

Daily Price Outlook

Gold price (XAU/USD) has been able to break its sluggish trading range and hit record highs above the $2,230 level. However, the upticks in gold prices were mainly driven by the sluggish performance of the US dollar and the prospect of interest rate cuts from the US Fed. Furthermore, ongoing geopolitical tensions were seen as another key factor that boosted the safe-haven gold price. Israeli forces besieged two Gaza hospitals, trapping medical teams amid gunfire. This heightens tension, prompting individuals to turn to safe investments like gold.

In contrast to this, hawkish Fed comments and robust US economic data could cap gains in the gold price as the hawkish Federal Reserve comments signal potential interest rate hikes, which could strengthen the US dollar and reduce the appeal of non-yielding assets like gold. Additionally, robust US economic data suggests less need for safe-haven assets, further suppressing gold prices.

Impact of Federal Reserve Policy and Economic Data on Gold Prices and US Dollar

On the US front, the possibility of interest rate cuts by the Federal Reserve has been weighing down the US dollar, which in turn is boosting gains in gold. Investors are expecting three rate cuts from the Fed this year, as the central bank has kept its benchmark borrowing rate steady at 5.25%-5.50% for the fifth consecutive time. However, the central bank still predicts three quarter-point cuts by year-end. Traders are currently estimating a 63% chance of a rate cut in June.

Thus, the anticipation of interest rate cuts is driving down the US dollar's value, making gold more attractive to investors. This trend is contributing to the upward movement in gold prices.

In contrast to this, if investors believe the Federal Reserve won't reduce interest rates as anticipated, it could strengthen the US dollar, which might slow down the increase in gold prices. However, the positive US economic data also supports this view, reducing the likelihood of rate cuts and further reinforcing the US dollar's strength.

Moving ahead, traders seem cautious to take any strong position as markets are closed for Good Friday, but attention will be on the US February Personal Consumption Expenditures Price Index (PCE) data. The Core PCE, which is the Federal Reserve's preferred measure of inflation, is expected to reveal a 0.3% rise in February.

Geopolitical Risks in the Middle East and Their Impact on Gold Prices

Another factor that has been boosting the safe-haven gold price was the ongoing geopolitical risk in the Middle East. This means that tensions and conflicts in that region, like the recent siege of Gaza hospitals by Israeli forces, can make investors nervous about the stability of other investments. Investors turn to safe-haven assets like gold, which tend to hold their value or even increase during uncertain times.

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

GOLD (XAU/USD) - Technical Analysis

On March 29, Gold (XAU/USD) experienced a notable increase, reaching $2233.12, a 1.74% gain, reflecting a robust bullish momentum in the market. The asset's movement has surpassed the pivot point at $2221.05, indicating potential for further upward trends. Key resistance levels are identified at $2243.71, $2259.74, and $2277.41, which could act as targets for continued bullish runs. Conversely, support levels are established at $2202.92, $2184.86, and $2165.23, providing potential fallback points should the market retract.

The technical indicators fortify the bullish outlook; the Relative Strength Index (RSI) at 76 suggests an overbought condition, signaling strong buying interest. Meanwhile, the 50-day Exponential Moving Average (EMA) at $2177.63 underscores a significant upward trend over the medium term, further corroborating the bullish sentiment in the market.

Considering these factors, the technical outlook for Gold suggests a strategic entry price for buying above $2225, with a take profit target at $2245, and a stop loss set at $2210 to manage risk.

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GOLD

Daily Trade Ideas

GOLD Price Analysis and Trade Forecast: Daily Trading Signal

By LonghornFX Technical Analysis
Mar 28, 2024
Gold

Daily Price Outlook

- Gold's market stance at $2194.79 signals a poised readiness for potential shifts, anchored by a pivotal $2187 level.

- Resistance at $2209, $2221, and $2234 marks thresholds for gains; support at $2176, $2168, and $2157 offers fallback positions.

- The alignment of the 50 EMA and RSI with bullish candles above $2187 bolsters the case for an uptrend continuation in Gold.

Gold (XAU/USD) holds its ground, trading at $2194.79, reflecting a market at a standstill, yet underlying currents suggest potential volatility. The precious metal's journey is navigated within a web of technical indicators and pivotal price levels that offer a roadmap for future price actions. At the heart of this analysis lies the pivot point of $2187, acting as a fulcrum around which Gold's immediate future oscillates. A breach above this level could signal strength and a continuation of the uptrend, with resistance markers at $2209, $2221, and $2234 delineating potential hurdles ahead. Conversely, the establishment of support at $2176, $2168, and $2157 forms a safety net, cushioning any downside movements and maintaining the bull's domain.

Technical indicators paint a bullish picture; the 50-day Exponential Moving Average (EMA) at $2178 suggests a supportive backdrop for bullish activity. Coupled with a Relative Strength Index (RSI) of 59, the conditions seem ripe for upward momentum. Notably, the presence of bullish candles above the $2187 level further solidifies the argument for an uptrend continuation. This technical confluence beckons traders to a market ripe with opportunities, yet warrants caution due to inherent market uncertainties.

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

GOLD (XAU/USD) - Trade Ideas

Entry Price – Buy Limit 2187

Take Profit – 2207

Stop Loss – 2174

Risk to Reward – 1: 1.5

Profit & Loss Per Standard Lot = +$2000/ -$1300

Profit & Loss Per Mini Lot = +$200/ -$130

GOLD

Technical Analysis

GOLD Price Analysis – March 28, 2024

By LonghornFX Technical Analysis
Mar 28, 2024
Gold

Daily Price Outlook

Gold price (XAU/USD) failed to stop its downward rally and remained well-offered around the $2,195 level. However, the reason for its downward trend can be attributed to the mild strength of the US dollar, which gained traction amid hawkish remarks by Fed's Waller. Another factor that has been weighing on the gold price was the risk-on market sentiment, which was supported by Federal Reserve Governor Christopher Waller's statement suggesting no rush to cut rates amid higher inflation readings. This boosted market sentiment by indicating confidence in economic strength.

In contrast to this, the geopolitical risks from the Russia-Ukraine war and conflicts in the Middle East can support the gold price by creating uncertainty and increasing demand for safe-haven assets, thereby helping to limit its losses.

Federal Reserve's Stance on Interest Rates and Gold Prices

On the US front, Federal Reserve Governor Christopher Waller stated that he is not rushing to lower interest rates despite recent inflation spikes, which strengthened the US dollar and limited gains for Gold. However, Waller also hinted that as inflation levels ease in the future, the Fed may consider implementing rate cuts later in the year. Hence, this prospect of rate cuts could increase demand for Gold.

Meanwhile, the Federal Reserve has projected that there might be three rate cuts throughout the year, which is in line with what the market expects. There's now a higher probability that the first-rate cut might happen during the June meeting of the Federal Open Market Committee (FOMC).

Moving ahead, traders are focusing on US economic calendar, which includes the final Q4 GDP figure, Weekly Initial Jobless Claims, Pending Home Sales, and the revised Michigan Consumer Sentiment Index. These indicators will be closely watched as it provide insights into the health of the US economy.

Geopolitical Tensions and Their Impact on Gold Prices

On the geopolitical front, ongoing conflicts such as the Russia-Ukraine war and tensions in the Middle East, particularly between Israel and Palestine, are expected to support the price of safe-haven assets like gold. As per the latest report, Israel's President Isaac Herzog's call for continued offensive actions against Hamas in Gaza, despite UN demands for a ceasefire, Meanwhile, statements from Israeli officials indicate a firm stance on national security issues, complicating relations with the Biden administration and raising concerns about further escalation.

Therefore, geopolitical tensions, including the Russia-Ukraine conflict and Israel-Palestine tensions, create uncertainty, prompting investors to seek safe-haven assets like gold, thus limiting potential losses in its price.

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

GOLD (XAU/USD) - Technical Analysis

Gold (XAU/USD) holds its ground, trading at $2194.79, reflecting a market at a standstill, yet underlying currents suggest potential volatility. The precious metal's journey is navigated within a web of technical indicators and pivotal price levels that offer a roadmap for future price actions. At the heart of this analysis lies the pivot point of $2187, acting as a fulcrum around which Gold's immediate future oscillates. A breach above this level could signal strength and a continuation of the uptrend, with resistance markers at $2209, $2221, and $2234 delineating potential hurdles ahead. Conversely, the establishment of support at $2176, $2168, and $2157 forms a safety net, cushioning any downside movements and maintaining the bull's domain.

Technical indicators paint a bullish picture; the 50-day Exponential Moving Average (EMA) at $2178 suggests a supportive backdrop for bullish activity. Coupled with a Relative Strength Index (RSI) of 59, the conditions seem ripe for upward momentum. Notably, the presence of bullish candles above the $2187 level further solidifies the argument for an uptrend continuation. This technical confluence beckons traders to a market ripe with opportunities, yet warrants caution due to inherent market uncertainties.

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GOLD

Daily Trade Ideas

GOLD Price Analysis and Trade Forecast: Daily Trading Signal

By LonghornFX Technical Analysis
Mar 27, 2024
Gold

Daily Price Outlook

- Gold's slight downturn at $2,178.72 belies an underlying bullish potential, anchored by critical resistance and support levels.

- A steadfast position above $2,193 could catalyze a bullish breakout, with the RSI and 50-day EMA reinforcing positive momentum.

- Strategic entry at $2,173 with a target of $2,193 and a stop loss at $2,160 offers a tactful approach, balancing risk and reward in the current market landscape.

In today's market, Gold (XAU/USD) presents a nuanced technical outlook, with a minor decline of 0.03%, situating the price at $2,178.72. Despite the slight drop, the metal's price action remains intriguing, notably hovering around significant technical markers. The pivot point at $2,193 sets a critical juncture, delineating a zone where bullish sentiments could be reinforced if sustained above this level.

The immediate resistance levels at $2,188, followed by $2,201 and $2,223, provide a clear roadmap for potential upward trajectories. Conversely, support levels established at $2,160, $2,147, and $2,128 frame the lower boundaries, safeguarding against extensive pullbacks.

The technical indicators, including an RSI of 53 and a 50-day EMA at $2,170, signal a predominantly bullish stance, underscored by an upward trendline that affirms gold's strength above the $2,193 benchmark. This technical configuration suggests an impending bullish phase, contingent on maintaining the pivotal support.

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

GOLD (XAU/USD) - Trade Ideas

Entry Price – Buy Limit 2173

Take Profit – 2193

Stop Loss – 2160

Risk to Reward – 1: 1.5

Profit & Loss Per Standard Lot = +$2000/ -$1300

Profit & Loss Per Mini Lot = +$200/ -$130

GOLD

Technical Analysis

GOLD Price Analysis – March 27, 2024

By LonghornFX Technical Analysis
Mar 27, 2024
Gold

Daily Price Outlook

During the European trading session, the GBP/USD pair failed to stop its downward trend and is showing sluggish performance on the day. However, the reasons for its downward trend can be attributed to several factors, including a renewed strength of US dollar and mixed economic data from both the UK and the US. It should be noted that the US Dollar Index, which measures the greenback against a basket of major currencies, is nearing a multi-week high. This strength is partly due to growing doubts about the Federal Reserve's commitment to cutting interest rates three times this year.

However, the previously released mixed economic data from the US includes a 1.4% increase in February's Durable Goods Orders, suggesting a healthy US economy, but downbeat indicators like US New Home Sales Change cause uncertainty in the market, which has supported the US dollar against major currencies like the British pound.

Bank of England's Stance and UK Economic Data Impact on GBP/USD

On the UK front, Catherine Mann from the Bank of England (BoE) believes that financial markets are expecting too many interest rate cuts this year. She thinks the BoE is unlikely to cut rates before the US Federal Reserve. Traders are watching for UK GDP growth numbers, expected to show a 0.3% quarter-on-quarter and 0.2% year-on-year contraction in the fourth quarter. If the GDP growth numbers are stronger than expected, the Pound Sterling (GBP) could gain strength. This could help the GBP/USD pair, acting as a positive force for the British pound against the US dollar.

Hence, Catherine Mann's comments dampening expectations for significant interest rate cuts by the Bank of England could lead to a stronger Pound Sterling (GBP) against the US dollar (USD). This could impact the GBP/USD currency pair positively, especially if UK economic data remains strong, supporting the British pound.

US Dollar Strength and Economic Data Impact on GBP/USD

On the US front, the broad-based US dollar has been gaining strength, mainly due to doubts about whether the Federal Reserve will cut interest rates as much as previously expected. This uncertainty stems from mixed economic data, including better-than-expected Durable Goods Orders but disappointing US New Home Sales Change figures. These mixed signals make investors unsure about the Fed's future actions, which supports the US dollar against other currencies like the British pound.

On the data front, the rise in Durable Goods Orders suggests a healthy economy, potentially prompting the Fed to consider raising interest rates instead of cutting them. Furthermore, the steady consumer confidence and slightly higher inflation expectations might encourage the Fed to maintain higher interest rates for longer. These factors could further strengthen dollar and contributes to the losses in the GBP/USD currency pair.

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

GOLD (XAU/USD) - Technical Analysis

In today's market, Gold (XAU/USD) presents a nuanced technical outlook, with a minor decline of 0.03%, situating the price at $2,178.72. Despite the slight drop, the metal's price action remains intriguing, notably hovering around significant technical markers. The pivot point at $2,193 sets a critical juncture, delineating a zone where bullish sentiments could be reinforced if sustained above this level.

The immediate resistance levels at $2,188, followed by $2,201 and $2,223, provide a clear roadmap for potential upward trajectories. Conversely, support levels established at $2,160, $2,147, and $2,128 frame the lower boundaries, safeguarding against extensive pullbacks.

The technical indicators, including an RSI of 53 and a 50-day EMA at $2,170, signal a predominantly bullish stance, underscored by an upward trendline that affirms gold's strength above the $2,193 benchmark. This technical configuration suggests an impending bullish phase, contingent on maintaining the pivotal support.

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