Risks cool down, GOLD is sold off to a critical point

XAUUSD have fallen sharply from recent highs due to the impact of reduced geopolitical risks and a stronger US Dollar. Federal Reserve officials, including Chairman Powell, have maintained a hawkish stance on interest rates, which has weighed on gold prices. Sentiment has changed as expectations for a Fed rate cut were revised to a potentially longer than previously expected June date.

Iran downplayed the retaliatory Israeli drone strike on April 19, which was previously seen as an escalation of the conflict.
Federal Reserve officials have made hawkish comments recently. Federal Reserve Chairman Jerome Powell said a lack of progress in fighting inflation is the reason interest rates must stay high for longer.
Chicago Fed President Goolsby also agreed with Powell. Goolsby said progress on disinflation had "stalled".
Notably, Goolsby is one of the most dovish members of the Federal Open Market Committee (FOMC).
Investors now await the US personal consumption expenditures (PCE) report on Friday for further direction on the outlook for US interest rate cuts.

In fact, in recent times, gold has been deeply affected by major and sudden events. The media war in the Middle East has caused gold to increase sharply followed by news that suddenly cooled the conflict.

Sticking to a rigid trend is a mistake that takes a lot of time to correct. There are some people who have won by following the market risk and making purchases and then receiving certain profits. But when the risk suddenly disappears, not reacting in time or knowing but not accepting the change is a huge mistake that brings heavy losses.

Analysis of technical prospects for XAUUSD
Gold has broken out of a short-term downtrend after breaking below the $2,365 level noted in the weekly edition and is now trading at a very important support area for the uptrend. medium term while maintaining price activity above EMA21.

Meanwhile, if the 0.236% Fibonacci retracement level continues to be broken below gold will continue to be at risk of further declines with the target level then at the upper edge of the price channel and more than the 0.328% Fibonacci level. This means if open long positions are taken they need to be protected behind the 0.236% Fibonacci level.

During the day, gold is expected to recover slightly but is not yet qualified for a strong price increase with notable technical levels as follows.
Support: 2,284USD
Resistance: 2,325 – 2,305USD

🪙SELL XAUUSD | 2364 - 2362

⚰️SL: 2368

⬆️TP1: 2357
⬆️TP2: 2352

🪙BUY XAUUSD | 2282 - 2284

⚰️SL: 2279

⬆️TP1: 2289
⬆️TP2: 2294

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Gold bars are trading near $2,300 per ounce after falling nearly 3% in the first two sessions of the week as easing tensions in the Middle East reduced safe-haven demand.

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Gold increased slightly to $2,330

After falling sharply to $2,300 yesterday, gold is currently up 0.34% to $2,330 today.

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Traders now expect only one or two rate cuts this year. This represents a significant disappointment from the six cuts that were expected at the beginning of the year and the three that Fed officials expected in March. While some investors and economists expect that no cuts will be made at all this year.

Yorum:

Gold prices are still struggling to regain recent upward momentum and are currently trading around a narrow range from $2,311 to 2,330. The reason for this partly comes from the cautious psychology of traders before important US economic data is released.

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Gold recovered to $2,326/oz and continued to trade within a range

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Gold prices have now recovered after falling sharply following last night's US GDP data and the precious metal is currently trading around $2,330. Although gold's upward momentum has weakened when the RSI indicator on the daily chart returned below the 60.00 threshold, the uptrend of XAU/USD is still maintained as the price is still above the short-term SMA lines. .

Yorum:

✅ XAUUSD has dropped significantly since the beginning of the week after failing to close above 2,400 USD per troy ounce. The price dropped to the psychological support level of 2,300 USD/troy ounce but rebounded to form a Hammer candle, showing the possibility of recovery.

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🔴The Federal Reserve Bank of Atlanta announces its growth estimates for the second quarter

The US Federal Reserve Bank of Atlanta announced its preliminary estimates of the GDP growth rate during the second quarter of 2024, according to the Federal Reserve Bank of Atlanta's GDP forecasting model, and growth estimates in the second quarter came at 3.9%.