Buying order engaged / #1,900.80 benchmark on Buyers aim

11 Jan 2023

Gold's general commentary: As expected, Powell’s speech delivered whatnot Neutral sentiments with no additional hints regarding clear monetary policy further hikes, as a result market remained within Neutral structure and offered no Short-term conclusions. My second point of interest is tomorrow's session High impact CPI announcement, as yesterday's and today's market openings showcased limited uptrend and downtrend at the same time, with the rising Bond Yields (# +2.68%) and steady flat DX which found the Support (typical Support pricing movements with mere # +0.24%). Current market sentiment points to an Intra-day #1,852.80 - #1,862.80 correction, however Medium-term remains under total Bullish domination and #1,900.80 psychological benchmark test is only matter of time (fueled aswell by emerging Golden Cross), however if CPI misses the estimates and delivers number greater than (# +6.5%), development may arise Sellers and correction will be priced in, otherwise, market has to be approached with extreme caution. Gold is Technically rising due Medium-term Oversold levels (remember multi-Month Bearish sequence) and easing Inflation numbers which is making Investors move their capital into riskier assets, rather than safe-havens such as Gold.


Technical analysis: Gold (Xau-Usd Spot prices) continues to be the product of High speculation on the Futures prices and the gap between Spot and GC persists. This just shows the continued High degree of Volatility and how unstable the market (along with most asset classes) has become. Technically the Hourly 4 chart's Bollinger band zone is preserved still and has Higher High's Lower zone to give (#1,865.80 or below) with Xau-Usd now having three Higher High's since February #24 (February #24, March #9 and August #17). The Hourly 4 chart is fully Overbought (but still an Ascending Channel) as the #RSI is on the same level as it was on the March #9 Top, pointing on new decline. I can call yesterday’s Low's a local Bottom and expect a pullback first towards the Hourly 4 chart's Resistance of #1,900.80 then depending on how DX fares into coming sessions aswell Bond Yields, I’ll base my strategy.


My position: Even though I had #2-consecutive micro Selling attempts, Price-action rejected both and since market picked a side, #1,900.80 - #1,905.80 Resistance cluster remains on the cards. I have engaged my Buying order (#1,882.80 representing entry point), as optimal Target remains #1,900.80 psychological benchmark. As I have stated many times throughout my remarks, do not approach the market without strict Risk management. Capital preservation is crucial in these times where market picks where to next and reveals major move.