Slobodan Drvenica
Windsor Brokers
XAU/USD
Gold dipped below $3000 and hit the lowest in three weeks in early Monday trading, in extension of pullback from new record high in past two days.
Sharp selloff surprised markets as gold price should have risen further in situation of strong risk aversion and growing uncertainty, but heavy losses in stock markets prompted investors to liquidate profitable positions in gold to cover part of losses and margin calls.
Fresh bears cracked $3000 level, which I previously marked as key support (psychological / former higher base / 50% retracement of $2832/$3167 upleg), but subsequent bounce signaled increased headwinds at this zone, highlighting the importance of support.
Reaction at $3000 level will probably provide clearer direction signals, with ability to hold above this level (to register minimum two daily closes above) to generate initial signal that correction is nearing its end.
The notion is partially supported by fresh dovish signals from Fed as markets in new reality, see growing chances for more rate cuts this year than initially estimated.
However, more work at the upside will be required to validate signal with rise above $3050 zone (today’s high / Fibo 38.2% of $3167/$2970 pullback) to revive bulls and close above $3070 zone (50% retracement / 10DMA) to confirm and shift near term focus higher.
On the other hand, unchanged fundamentals (with threats of deterioration) keep the downside at risk.
Sustained break of $3000 trigger to sideline larger bears and open way for deeper correction and unmask targets at $2970/60 and $2926 in extension.
Res: 3039; 3055; 3070; 3088.
Sup: 3000; 2970; 2950; 2926.
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 bounces off lows, retests 1.1370
Following an early drop to the vicinity of 1.1310, EUR/USD now manages to regain pace and retargets the 1.1370-1.1380 band on the back of a tepid knee-jerk in the US Dollar, always amid growing optimism over a potential de-escalation in the US-China trade war.
GBP/USD trades slightly on the defensive in the low-1.3300s
GBP/USD remains under a mild selling pressure just above 1.3300 on Friday, despite firmer-than-expected UK Retail Sales. The pair is weighed down by a renewed buying interest in the Greenback, bolstered by fresh headlines suggesting a softening in the rhetoric surrounding the US-China trade conflict.
Gold remains offered below $3,300
Gold reversed Thursday’s rebound and slipped toward the $3,260 area per troy ounce at the end of the week in response to further improvement in the market sentiment, which was in turn underpinned by hopes of positive developments around the US-China trade crisis.
Ethereum: Accumulation addresses grab 1.11 million ETH as bullish momentum rises
Ethereum saw a 1% decline on Friday as sellers dominated exchange activity in the past 24 hours. Despite the recent selling, increased inflows into accumulation addresses and declining net taker volume show a gradual return of bullish momentum.
Week ahead: US GDP, inflation and jobs in focus amid tariff mess – BoJ meets
Barrage of US data to shed light on US economy as tariff war heats up. GDP, PCE inflation and nonfarm payrolls reports to headline the week. Bank of Japan to hold rates but may downgrade growth outlook. Eurozone and Australian CPI also on the agenda, Canadians go to the polls.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.