After the Fed. Meeting last week, gold climbed above 2000, while the market refocused on an early rate cut next year. Powell’s dovish comments further tuned the market’s sentiments; the latest CME FedWatch tools indicate that there is currently a close to 70% chance of a 1/4 basis point rate cut next March, while there is almost 95% chance of a 1/4 basis point rate cut in May next year. On the day of the Fed meeting, gold prices rose nearly $50(1), and technically, it is currently neutralizing the selling pressure that occurred from the 2146 drop on December 4th.
1-hour chart – In the past 48 hours, gold prices have been oscillating within the 2020-50 range(2). There hasn’t been a significant trading volume that would lead to a breakout from the range. Until gold can break free from this range, take advantage of the S-T range(2). There haven’t been any important economic data releases at the beginning of this week. However, if further consolidation occurs later this week, the next range to watch out for would be between 2000-20(4). The descending trend line(3) still needs confirmation but can still serve as a reference for S-T strategies.
Daily chart – Currently, gold prices are finding support at 2017 – 20 MA(5). There is still relatively strong selling pressure around the 2035-47 range (6). For S-T trading on the daily chart, 2017-47 should be the range for now. If the gold price can close within or above the 2035-47 range by the end of this week, it would be the first signal that gold prices are preparing to test a new high.
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S-T ressitance 3 |
2015 |
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S-T ressitance 2 |
2010 |
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S-T ressitance 1 |
2007 |
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Market price |
2002 |
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S-T support 1 |
2000 |
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S-T support 2 |
1994-5 |
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S-T support 3 |
1990 |
P. To
Risk Disclosure: Gold Bullion/Silver (“Bullion”) trading carries a high degree of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. This article is for reference only and is not a solicitation or advice to trade any currencies and investment products . Before deciding to trade Bullion you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment or even more in extreme circumstances (such as Gapping underlying markets) and therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading Bullion, and seek advice from an independent financial advisor if you require. Client should not make investment decision solely based on the point of view and information on this article.