Gold Support in Focus– XAU/USD Fed Levels


Gold Technical Price Outlook: XAU/USD Short-term Trade Levels

Gold costs have rebounded off key technical help with the restoration now in focus heading into main occasion threat this week. While the broader outlook stays weighted to the draw back, the risk for a bigger rebound stays whereas above 1696 – the stage is ready heading into the Fed curiosity rated and key development & inflation knowledge into the shut of the month. These are the up to date targets and invalidation ranges that matter on the XAU/USD technical charts heading into the FOMC and the shut of the week / month. Review my newest Strategy Webinar for an in-depth breakdown of this gold technical setup and extra.

Gold Price Chart – XAU/USD Daily

Chart Prepared by Michael Boutros, Technical Strategist; Gold on Tradingview

Technical Outlook: In my final Gold Price Outlook we famous that XAU/USD had, “responded to downtrend support with a daily reversal candle that nearly covers the entire weekly range – the immediate short-bias is vulnerable here.” This interpretation was invalidated the next day when gold plunged even decrease with value rebounding sharply with an outside-day reversal off a key help barrier at 1671/82– a area outlined by the May / June 2020 lows, the 2021 lows and the 38.2% Fibonacci retracement of the 2015 advance. A rebound of greater than 3.4% is now holding slightly below the August low-day shut at 1729 – the battle strains are drawn heading into the FOMC, US GDP and inflation (PCE) later this week.

Gold Price Chart – XAU/USD 240min

Gold Price Chart - XAU/USD 240min - GLD Short-term Trade Outlook - GC Technical Forecast - XAUUSD

Notes: A better have a look at Gold value motion highlights final week’s rebound off key help with the restoration faltering simply forward of the median-line into the weekly open. Initial resistance now eyed on the December low / 78.6% retracement of the 2021 vary at 1753/62 with medium-term bearish invalidation now lowered to the January low-day/week shut at 1791– a breach / shut above this threshold could be wanted to recommend a extra vital low was registered this month. Note {that a} break beneath this key help barrier might gasoline one other bout of accelerated losses for the yellow metallic with such a state of affairs exposing subsequent goals on the decrease parallel (at present ~1650s) and the January 2020 swing excessive at 1611.

Bottom line: Gold costs have rebounded off confluent downtrend help with main occasion threat on faucet into the shut of the week / month. From at buying and selling standpoint, search for draw back exhaustion forward of the yearly low-close at 1696 IF value is heading larger on this restoration with a breach above the weekly vary highs wanted to gasoline the push. Expect volatility into the FOMC tomorrow and keep nimble into the month-to-month / weekly shut. Review my newest Gold Weekly Price Outlook for a better have a look at the longer-term XAU/USD technical buying and selling ranges.

For an entire breakdown of Michael’s buying and selling technique, assessment his Foundations of Technical Analysis sequence on Building a Trading Strategy

Gold Trader Sentiment – XAU/USD Price Chart

Gold Trader Sentiment - XAU/USD Price Chart - GLD Retail Positioning - GC Short-term Technical Outlook

  • A abstract of IG Client Sentiment exhibits merchants are net-long Gold- the ratio stands at +7.85 (88.70% of merchants are lengthy) – sometimes bearishstudying
  • Long positions are10.78% larger than yesterday and 11.34% larger from final week
  • Short positions are2.64% decrease than yesterday and a couple of.94% larger from final week
  • We sometimes take a contrarian view to crowd sentiment, and the actual fact merchants are net-long suggests Gold costs could proceed to fall. Traders are additional net-long than yesterday and final week, and the mixture of present positioning and up to date adjustments provides us a stronger Gold-bearish contrarian buying and selling bias from a sentiment standpoint.

Economic Calendar

Economic Calendar - Key Data Releases - Weekly Gold Event Risk - Fed Rate Decision - US GDP & Inflation (PCE)

Economic Calendarnewest financial developments and upcoming occasion threat.

Active Technical Setups

– Written by Michael Boutros, Technical Strategist with DailyFX

Follow Michael on Twitter @MBForex

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