Will XAU/USD manage to rise?

2023年9月22日

The price of gold showed resilience after a bounce in the range of $1,914-$1,913 from the previous day, recording a modest increase of just over 0.20% and breaking a three-day losing streak. However, it gave up the weekly gains, being below all moving averages. Technical indicators confirm the bearish sentiment, with the peak of the pair this week at the 61.8% Fibonacci retracement, then experiencing a sharp retreat. Gold is now below the 38.2% retracement, representing an immediate resistance level.

The 4-hour chart suggests further bearish extensions, with the pair encountering selling interest in the short term. Support levels are identified at 1,907.30, 1,897.20, and 1,884.70, while resistance levels are at 1,921.80, 1,933.30, and 1,946.10.

From a fundamental perspective, the weekly decline of XAU/USD was caused by the strengthening of the US dollar following the Federal Reserve's decision to keep rates unchanged. The Fed left open the possibility of a rate hike later in the year, focusing on a soft landing to avoid a recession. The Bank of England also kept rates unchanged, emphasizing the need for restrictive monetary policies to control inflation. These events triggered a decline in global indices and an increase in bond yields.

My goal will be to wait for the opening of London before evaluating any market entry, in order to monitor any sharp movements that may occur during the London session, where numerous macroeconomic data are expected. I am primarily focused on a long position... Let me know what you think, happy trading to everyone from Nicola, CEO of Forex48 Trading Academy.