XAUUSD → Melts Below $1900, Where to Next?

XAUUSD PRICE FORECAST:
- Gold Prints Fresh Lows as US Yields Surge with the 10Y Hitting New Highs.
- Dollar Index (DXY) Advance Continued as Well Running into Resistance Just Shy of the 107.00 Handle. Is There an End in Sight for the DXY Rally?

Global markets continued to feel the pinch today extending losses in the early part of the US session as US Yields continued to advance alongside the US Dollar. Gold was no different slipping below the $1900 mark with gusto as it breezed past recent lows around $1884 to print a session low of $1872 at the time of writing.

DXY AND AUTO WORKERS STRIKE
The US Dollar index reached new highs today but faced resistance around 106.80. Gold and the SPX saw a slight rebound as the US session neared its end. However, it is unlikely that this bounce will be sustainable due to selling pressure. Fed policymaker Harker's hawkish comments today added to the narrative of higher interest rates for a longer period. Harker mentioned that the current data does not indicate restrictive policies and hinted at further rate hikes if the Fed's objectives are not met. This follows the hawkish tone set by other Fed policymakers after last week's Central Bank meeting.

The US is facing a United Auto Workers strike and there are plans to strike at 3 more automotive plants in Detroit. The strike will continue unless a new contract is ratified, which could impact the US economy. Market participants are concerned about Q4 as US consumers may face pressure due to depleted savings, restarting student debt repayments, and higher oil prices. This could help the Fed control demand and bring inflation closer to target.

US Yields and in particular the 10Y enjoyed a very productive Wednesday printing fresh highs around 4.62%. This was a surprise as this morning it appeared US Yields may be in for some pullback as the 10Y traded briefly below 4.5% mark before embarking on a bullish rally to fresh highs.

XAUUSD TECHNICAL OUTLOOK
Gold prices fell around $30, marking its worst day since July. The death cross pattern, with the 50-day MA crossing below the 200-day MA, indicates bearish momentum. Immediate support lies at the daily low of $1872, and a break could lead to a drop towards the $1850s region. However, a short-term retracement is possible due to oversold conditions and depend on the Dollar Index and US Yields. Any pullback attempts are likely to face selling pressure.

تعليق:

Initial resistance is expected to be around 1,850 USD/ounce. The perception that higher inflation means higher interest rates makes non-interest-bearing metals somewhat worse off. If as predicted, gold will slide to 1,840 USD/ounce.

تعليق:

Gold prices have seen a difficult week as a recovery in the US dollar and rising US bond yields have had a negative impact on the market.

Although gold is facing many difficulties, Kitco News's latest weekly gold survey shows that most market analysts are optimistic that this precious metal will recover in the near future.

تعليق:

🕯 BUY GOLD | 1837 - 1840

🔴 SL: 1832

🟢 TP1: 1845
🟢 TP2: 1850

تم فتح الصفقة:

HIT TP1 + 50pips. Heading to TP2 ✔️✔️✔️

تعليق:

It is possible that gold will reverse this week and the driving force for gold's increase is that the USD has peaked and begun to decline, the precious metal will soon bottom. Falling core inflation helps stabilize US interest rates and the decline in the USD will support the precious metal. Gold needs to return to 1,885 USD/ounce for technical stability and 1,892 USD/ounce to strengthen market confidence.

تعليق:

USD🇺🇸 JOLTs Job Openings (Aug)

Previous: 8.827M
Expect: 8.830M

Current: 9.61M