GOLD Price Rides High on Fed Speculation as Market Awaits Datas

4 Jul

🟡 The price of gold is riding high on the back of dovish Federal Reserve expectations, a trend that is gaining momentum during the US Independence Day holiday. This bullish rally is likely to see exaggerated movements due to low market liquidity and repositioning by traders ahead of the critical US Nonfarm Payrolls data set to be released on Friday.

As gold continues its upward trajectory, we have identified a significant supply area where price movements could see a reversal. Over the past decade, this particular period of the year has consistently shown a bearish seasonality for gold prices. This historical trend suggests that despite the current bullish momentum, a downturn may be on the horizon.

In preparation for this anticipated shift, we are setting a pending order in the supply area with the intention to short gold in the near future. This strategy aims to capitalize on the expected seasonal decline, leveraging the supply area's historical significance and the current market dynamics influenced by Federal Reserve policies and upcoming economic data.

Our analysis indicates that while gold's bullish rally may continue in the short term, the confluence of historical seasonality and key economic data releases presents a compelling opportunity for a well-timed short position. By closely monitoring these factors, we aim to optimize our strategy and maximize potential returns as market conditions evolve.



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