Slobodan Drvenica
Windsor Brokers
Gold
Gold regained traction and bounced on Thursday, following a sharp fall in past few days.
Fresh strength signals that the situation is stabilizing after a turbulent period and broader bulls are about to re-take control.
The yellow metal benefited from growing signals that the Fed will start cutting interest rates as from September, with US policy easing cycle about to start and deteriorating conditions of the US economy, fueling speculations about stronger than expected initial rate cut (0.5% vs 0.25%).
Economic slowdown and growing US debt concerns are likely to continue to boost gold price, contributing to overall bullish picture.
Technical picture on daily chart is firming, as momentum emerges into positive territory and RSI turns north above neutrality zone, with close above pivots at $2407/14 (Fibo 38.2% of $2477/$2364 / 20DMA) to boost positive signals and open way for further recovery.
Near-term action is expected to remain biased higher while holding above psychological $2400 level.
Res: 2414; 2420; 2434; 2450.
Sup: 2400; 2391; 2379; 2364.
Interested in XAU/USD technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD retreats below 1.0900 on renewed USD strength
EUR/USD struggles to build on European session gains and trades below 1.0900 in the second half of the day on Thursday. Better-than-expected weekly Initial Jobless Claims data from the US supports the USD, causing the pair to stretch lower.
USD/JPY recovers above 146.00 amid risk aversion
USD/JPY has trimmed losses to regain 146.00 in European trading on Thursday. BoJ's hawkish Summary of Opinions and a risk-off market mood continue to underpin the Japanese Yen, checking the upside attempts in the pair. The focus shifts to US employment data.
Gold clings to strong daily gains above $2,400
Gold (XAU/USD) holds its ground and stays in the green above $2,400 in the American session. The encouraging Jobless Claims data from the US helps the USD and the US yields stretch higher, limiting XAU/USD's upside for the time being.
Bitcoin price poised for a potential relief rally before continuing its current downtrend
Bitcoin's (BTC) price is recovering from initial weekly losses after a 7% drop on Monday, trading 3.8% higher at $57,245 at the time of writing on Thursday.
Blaring the bear market siren
The market may long for a peaceful passage, but we're gearing up for what looks to be more akin to a rollercoaster expedition. Prepare for a potentially "Turbulent Thursday" and brace for what might become a "Frantic Friday."