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📈 Product: XAU/USD 📈 Prediction: Increase
✨ Fundamental Analysis:
Gold prices dipped during the North American session, reaching a daily low of $2,430 and a high of $2,462, as the US Dollar strengthened due to weak economic data. The contraction in the manufacturing sector and weak jobs data highlighted a fragile labor market, triggering risk aversion and volatility in financial markets. Asian stocks took a hit, with the Nikkei dropping over 2%, amid speculation of continued rate hikes by the Bank of Japan. European markets also fell on softer-than-expected data, while the Bank of England's rate hike was perceived as hawkish. Poor US data, including a drop in the ISM Manufacturing PMI, raised concerns about the American economy, strengthening the US Dollar and pushing gold into a consolidation phase.
📊 Technical Analysis:
The XAU/USD pair remains well above the 23.6% Fibonacci retracement of the June/July rally at $2,438.75, with buyers stepping in around the 61.8% retracement. The daily chart shows the pair developing above all its moving averages, with the 20 SMA providing near-term support around $2,410. Technical indicators lack strong directional cues but stay in positive territory, indicating bullish dominance. In the short term, the 4-hour chart suggests a pause in the bullish momentum, but bulls maintain control. A bullish 20 SMA is crossing above the 100 SMA at around $2,410.80, and the 38.2% Fibonacci retracement. Technical indicators have lost some momentum but remain near overbought levels, pointing to a potential continuation of the uptrend.
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