GOLD → New reasons for price movement

9 ต.ค. 2023

XAUUSD has been forming a small gap since the opening of the session (the situation may differ at different brokers) and essentially continues the move from Friday's fundamental leverage

There was quite a lot of news over the past weekend, including a serious conflict in the middle east. Adding to the bullish narrative in the DXY is another geopolitical factor, the reaction can be seen in the chart below left. The gold market has continued to rally since Friday, but surprisingly following the USD, but there is a reason for this. Since gold, according to most people, is the ideal defense against international instability, the geopolitical factor can raise the prices of this asset, in addition, gold is at favorable levels for buying (not to be confused with short-term trading). From the technical point of view we are interested in the area of 1857 - 1846. The market is forming a consolidation before moving in one direction or another. The price is squeezed between the broken MA-200 and the descending resistance. A breakout of one of the boundaries will provide momentum. (The trading strategy can develop according to two scenarios: resistance breakout or false breakout)

Support levels: 1846.3
Resistance levels: 1857.7

The descending resistance line and 1857.7 level will be important for buying. 1846.3 level will be important for selling. Consolidation above or below these levels will form the potential for a move in one direction or the other

XAUUSD XAGUSD MGC1! SI1! GC1! DXY US500

Regards R. Linda!