Gold Trading Strategy ( XAUUSD ) May 22, 2023

The US dollar (USD) fell on the last day of the week as the bulls opted to take profits after a recent rally to a near two-month high. This, in turn, is seen as a key factor in gold's favor in US dollar terms, although any meaningful upside still looks elusive. The USD's modest decline is likely to be maintained amid expectations that the US Federal Reserve (Fed) will keep interest rates higher for a longer time. In fact, Dallas Fed President Lorie Logan said on Thursday that the economic data points so far do not justify skipping a rate hike at the next policy meeting in June. Furthermore, several Fed officials this week expressed concern that inflation in the US is not cooling down fast enough. This, in turn, forced investors to narrow their bets on a rate cut later this year.

Support level: 1,956.70 1,942.50

Resistance levels: 1,989.75 2,008.40 2,029.10

Trading recommendation:

Sell 1992 -1993

Stop Loss : 2000

Take profit1 : 1990
Take Profit 2: 1985
Take profit 3: 1980
Take profit 4: 1976

Buy 1949-1951

Stop Loss : 1946

Take profit1 : 1960
Take profit 2: 1965
Take profit 3: 1970

Note: Always install Stoploss and Takeprofit to ensure safety in trading