Gold continues to ignore geopolitical tensions and remain focused on the US Interest Rate story. Fed speak for the most part continue to suggest a rate cut later rather than sooner which has been weighing on Gold’s potential upside. Note that market players are always thinking ahead and are looking for an easing to rekindle inflation and thus boost demand for the yellow metal.
Resistance
- 2378.49 – Friday’s High
- 2370.49 – Descending Triangle
- 2353.75 – Daily Consolidation High
Support
- 2332.00 – 20D Moving Average
- 2321.38 – Previous Intraday Consolidation Resistance
- 2303.67 – Daily Consolidation Support
XAUUSD is now forming a descending triangle in the daily charts with yesterday’s sharp drop defining a new lower high. Indicator wise the daily oscillator has come off overbought levels with a bearish cross though intraday we are oversold in 4H charts while holding above an immediate support. We continue to favor shorts though only on a break of the 20D Moving Average or with long wicks in hourly charts coming off 2353.75. Failure to clear the 20D Moving Average and long tails in the hourly charts may be seen as a buy for a test of the triangle resistance.
