Product: XAU/USD
Prediction: Increase
Fundamental Analysis:
The price of gold has recently encountered a three-day decline, settling around $2,410 per ounce. This dip can be attributed to several influencing factors:
A slight weakening of the US dollar.
Speculation surrounding the upcoming US presidential election, particularly the potential resurgence of a "Trump trade" scenario favoring the US dollar and Treasury bond yields.
Anticipation of a Federal Reserve interest rate hike in September, reducing the allure of non-yielding assets like gold.
Despite these pressures, the outlook remains dynamic, shaped by ongoing market developments.
Technical Analysis:
Technically, gold has seen a recent downturn, touching approximately $2,410 during Friday's European trading session. This drop followed an inability to sustain above the critical $2,450 threshold.
However, the short to long-term exponential moving averages continue to trend upward, underscoring a positive near-term outlook. Moreover, a significant support level is anticipated near the rising trendline from the February low of $1,984.30, reinforcing bullish sentiment.
Although the 14-day Relative Strength Index (RSI) has declined to 58, signaling reduced upward momentum, the overall bias towards gold remains favorable.
📊 Key Takeaways:
Fundamentals: Watch for US dollar strength and election-related speculations.
Technicals: Support levels near the $2,410 mark and upward trending moving averages suggest resilience.
🔍 Stay informed as market dynamics unfold, and seize opportunities wisely!
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Gurdip Singh
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