XAUUSD 01/07: GOLD'S RELIEF RALLY FROM A MONTHLY LOW – USD WEAKENS, BUT CLEAR MOMENTUM IS STILL MISSING
🌍 Market Overview – USD Weakness & Gold's Rebound Potential
After a significant drop to a one-month low, Gold is beginning to recover slightly, partly due to a weaker USD, improving market sentiment. However, the rally remains cautious and still lacks a strong momentum to push gold decisively higher.
💵 USD Weakness: Can Gold Continue to Rebound?
Recent US economic data has shown a slight decline in consumer spending, which has led to speculations that the Federal Reserve may take a more dovish stance on interest rates in the near future. This has weakened the USD, providing room for Gold to rebound slightly.
That said, there hasn't been a significant catalyst to push Gold into a strong breakout yet.
📉 The Fed is Still the Key Player
The market is closely watching the Fed's next moves. However, there’s a divide on whether interest rates will be cut or maintained. The recent US data isn’t weak enough to warrant a policy change from the Fed, but it’s also not strong enough for the Fed to keep its hawkish stance intact.
This leaves Gold in a limbo, with no clear direction in the near term. Gold is caught between weak expectations of further rate cuts and the ongoing strength of the USD.
🧠 Analysis for Traders:
Gold is responding lightly to macroeconomic factors but hasn’t established a strong trend. This is a period prone to market noise—Gold may jump up and down on news, but the momentum required to establish a consistent trend is lacking.
Traders should monitor USD movements and US labor data closely this week, especially the NFP report, as this could provide more clarity for Gold’s future direction.
✍️ Conclusion:
Gold is recovering from its lows, but it remains uncertain.
The Buy side hopes for rate cuts by the Fed.
The Sell side is betting on USD strength.
As for us traders, let’s stay patient, observe closely, and be ready for the next move. The big wave may still be coming, but smaller price actions right now could give us clues for the upcoming trend.
🔶 Key Levels & Strategy:
Current Support Zone: Gold is holding above the critical psychological support levels of 3300-3304. If the upward momentum continues, a move towards 335x-337x is highly possible in the near term.
Liquidity Gap: Currently, there’s a liquidity gap at the higher levels. The goal is for Gold to rise further to fill this gap before any deeper retracement occurs.
📈 Trading Plan:
BUY ZONE: 3303 – 3301
‼️ SL: 3297
✔️ TP: 3306 → 3310 → 3315 → 3320 → 3325 → 3330 → ???
SELL ZONE: 3358 – 3360
‼️ SL: 3364
✔️ TP: 3354 → 3350 → 3345 → 3340 → 3320
⚡ Final Thoughts:
As the market awaits further data, keep an eye on these key support and resistance levels for your trading setups.
The overall trend is still upward, but short-term volatility is expected. Make sure to follow your risk management strategies.
🌍 Market Overview – USD Weakness & Gold's Rebound Potential
After a significant drop to a one-month low, Gold is beginning to recover slightly, partly due to a weaker USD, improving market sentiment. However, the rally remains cautious and still lacks a strong momentum to push gold decisively higher.
💵 USD Weakness: Can Gold Continue to Rebound?
Recent US economic data has shown a slight decline in consumer spending, which has led to speculations that the Federal Reserve may take a more dovish stance on interest rates in the near future. This has weakened the USD, providing room for Gold to rebound slightly.
That said, there hasn't been a significant catalyst to push Gold into a strong breakout yet.
📉 The Fed is Still the Key Player
The market is closely watching the Fed's next moves. However, there’s a divide on whether interest rates will be cut or maintained. The recent US data isn’t weak enough to warrant a policy change from the Fed, but it’s also not strong enough for the Fed to keep its hawkish stance intact.
This leaves Gold in a limbo, with no clear direction in the near term. Gold is caught between weak expectations of further rate cuts and the ongoing strength of the USD.
🧠 Analysis for Traders:
Gold is responding lightly to macroeconomic factors but hasn’t established a strong trend. This is a period prone to market noise—Gold may jump up and down on news, but the momentum required to establish a consistent trend is lacking.
Traders should monitor USD movements and US labor data closely this week, especially the NFP report, as this could provide more clarity for Gold’s future direction.
✍️ Conclusion:
Gold is recovering from its lows, but it remains uncertain.
The Buy side hopes for rate cuts by the Fed.
The Sell side is betting on USD strength.
As for us traders, let’s stay patient, observe closely, and be ready for the next move. The big wave may still be coming, but smaller price actions right now could give us clues for the upcoming trend.
🔶 Key Levels & Strategy:
Current Support Zone: Gold is holding above the critical psychological support levels of 3300-3304. If the upward momentum continues, a move towards 335x-337x is highly possible in the near term.
Liquidity Gap: Currently, there’s a liquidity gap at the higher levels. The goal is for Gold to rise further to fill this gap before any deeper retracement occurs.
📈 Trading Plan:
BUY ZONE: 3303 – 3301
‼️ SL: 3297
✔️ TP: 3306 → 3310 → 3315 → 3320 → 3325 → 3330 → ???
SELL ZONE: 3358 – 3360
‼️ SL: 3364
✔️ TP: 3354 → 3350 → 3345 → 3340 → 3320
⚡ Final Thoughts:
As the market awaits further data, keep an eye on these key support and resistance levels for your trading setups.
The overall trend is still upward, but short-term volatility is expected. Make sure to follow your risk management strategies.
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⚜️Daily 8 to 15 Signals VIP
Get quality daily trading signals and plans here
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
⚜️ Trade with Money Market Flow, logic, Price action 📉📈
⚜️Risk Reward 1.3 to 2.5...
⚜️Daily 8 to 15 Signals VIP
Get quality daily trading signals and plans here
JOIN NOW
byvn.net/t06K
⚜️Risk Reward 1.3 to 2.5...
⚜️Daily 8 to 15 Signals VIP
Get quality daily trading signals and plans here
JOIN NOW
byvn.net/t06K
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.