Gold is currently facing significant downward pressure, recently touching its lowest point since early October and dipping below the $4,000 mark. This bearish sentiment is largely fueled by two key factors: cautious remarks from Federal Reserve Chairman Jerome Powell regarding policy easing, and a noticeable de-escalation in the ongoing trade tensions between the United States and China.
As traders, we're now watching for the next catalyst. Upcoming macroeconomic data from the US, coupled with further commentary from Fed officials, will be critical in shaping Gold's near-term valuation.
The December Rate Cut: Not a Done Deal
While the market has been pricing in potential rate cuts, it's important to remember that a cut in December is not yet a certainty. This ambiguity is keeping buyers on the sidelines and adding to the metal's weakness.
A Look at the Charts (Technical View)
From a technical perspective, Gold is at a critical juncture. The key breakout level to watch is the $4050 - $4060 area.
The Bullish Case: If Gold can decisively break above this $4050/$4060 resistance, it would open the door for a test of the next significant level, around $4150 / $4160.
The Bearish Case: However, until Gold can firmly establish itself and stabilize above the $4150/$4160 zone, the risk of a deeper correction remains very high till $3700
We are observing a recurring pattern: Gold is repeatedly failing at immediate trendline resistance levels. In technical trading, this is often a classic sign that the market is weak and may be poised for a further decline, assuming there are no major fundamental surprises.
Trading Strategy: Patience is Key
For those of us looking to enter long-term buy positions, a two-pronged approach is necessary:
Fundamental Watch: Keep a close eye on fundamental developments. Specifically, any new updates regarding US-China tariffs or shifts in the Federal Reserve's tone on interest rates will be major market movers.
Technical Confirmation: Patience is required. We must wait for a confirmed technical breakout above the $4150 / $4160 area. Until this happens, the bearish pressure is likely to continue. Otherwise, gold still have bigger chances to test $3700 before it rise again.
As traders, we're now watching for the next catalyst. Upcoming macroeconomic data from the US, coupled with further commentary from Fed officials, will be critical in shaping Gold's near-term valuation.
The December Rate Cut: Not a Done Deal
While the market has been pricing in potential rate cuts, it's important to remember that a cut in December is not yet a certainty. This ambiguity is keeping buyers on the sidelines and adding to the metal's weakness.
A Look at the Charts (Technical View)
From a technical perspective, Gold is at a critical juncture. The key breakout level to watch is the $4050 - $4060 area.
The Bullish Case: If Gold can decisively break above this $4050/$4060 resistance, it would open the door for a test of the next significant level, around $4150 / $4160.
The Bearish Case: However, until Gold can firmly establish itself and stabilize above the $4150/$4160 zone, the risk of a deeper correction remains very high till $3700
We are observing a recurring pattern: Gold is repeatedly failing at immediate trendline resistance levels. In technical trading, this is often a classic sign that the market is weak and may be poised for a further decline, assuming there are no major fundamental surprises.
Trading Strategy: Patience is Key
For those of us looking to enter long-term buy positions, a two-pronged approach is necessary:
Fundamental Watch: Keep a close eye on fundamental developments. Specifically, any new updates regarding US-China tariffs or shifts in the Federal Reserve's tone on interest rates will be major market movers.
Technical Confirmation: Patience is required. We must wait for a confirmed technical breakout above the $4150 / $4160 area. Until this happens, the bearish pressure is likely to continue. Otherwise, gold still have bigger chances to test $3700 before it rise again.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.