1709 #XAUUSD# GOOD for buyers, and now for sellers

19 ก.ค.

Hello traders,

Spot gold prices have dropped below the critical support threshold of $2,440 per ounce.

As per the CME Group's FedWatch Tool, there is a 98% market consensus expecting a rate cut from the United States in September. Even without a direct interest in gold, the prospect of a rate cut has significantly boosted market interest for large investments.

Firstly, cutting interest rates lowers the opportunity cost of holding gold. Secondly, gold often serves as a safe-haven asset, with the market eyeing this strategy in anticipation of a Trump 2.0 era.

So, what's the outlook for gold trading?

When the general sentiment is extremely bullish, the long-term upward momentum may peak, suggesting overcrowding at the peak, as bulls may choose to sell. This could follow gold hitting new all-time highs, precipitating a pullback.

Currently, gold prices are facing a correction after a surge exceeding 8% over the past three weeks, indicating a need for consolidation. The medium-term outlook remains bullish, though the Relative Strength Index (RSI) is lower, implying that buyers might take a pause before driving up prices further.

There are reports stating that central banks have ceased purchasing gold. Although ETFs continue to see inflows, new investments aren't flooding in at high levels. These purchases happen in batches, making a gold bullish pullback quite probable at this juncture.


GOOD LUCK!
LESS IS MORE!