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Fed attracts Gold Buyers once again, distorting Technical trend for FX:XAUUSD by goldenBear88

Gold’s general commentary: The outlook remains without additional losses (in Price), Gold is assisted once again by Fed, which attracted Buyers and distorted fair Technical Selling trend. Gold is consolidating above the #1,818.80 on Daily chart (#1,827.80 as an ultimate Top) with the RSI on a similar pattern as the week of August #20 – #27, #2020. The critical test of the Daily chart’s Support zone was showing idle movements, as I do not give much significance at the moment, as Gold’s bias is switched from Neutral to Bullish / just at it was during the last couple of tests on March #31 and June #5. Note that in both cases a strong rally followed. So Gold is a Sell option either when #1,812.80 breaks on Hourly 4 chart, or when #1,800.80 Support gets tested and completes (market closing) one red candle below it, as Technically, Buying is strongly limited. Usually, out of the past #17 FOMC minutes, #16 announcements guided Gold in a Short-term rally, causing spikes on both sides (which will be the case shortly), only #1 was sustainable and lead Gold on #23$ rise (#1,580.70 on November #2020). Investors should park their capital on riskier assets which would put Gold under Selling pressure, but yet again, Fed Lowered the Yield in a battle against the Inflation , which is constantly Buying back every Technical dip on Gold and distorting Technical trends. I cannot treat Daily chart’s Bull spikes as an movement changer nor sustainable Bullish reversal.

My position: As Gold dipped towards #1,792.80 Intra-day (near market closing) and I expected further slide (was ready with my Selling order), Price-action rebounded and hit my breakeven Stop-loss. I will not make any more wild bets on the market (for current session) as Volatility is still on High levels. For those who want to participate on current Volatility (not advisable), Traders can look for Selling opportunity near #1,827.80 towards #1,812.80. I am expecting Price-action to continue Trading below #1,800.80 psychological barrier within #2 sessions.

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