Peter Smith
Despite near-term USD strength, XAU's bullish trajectory remains intact, according to StoneX Bullion's Fawad Razaqzada.
Factors Influencing XAU Trajectory
Razaqzada highlights the pivotal role of the U.S. dollar's trajectory in shaping gold's future highs. External factors, such as the Swiss National Bank's rate cut and dovish stances from other central banks, propelled USD strength, creating headwinds for gold.
XAU, despite facing recent challenges amidst a robust U.S. dollar, is poised for further ascent, asserts Fawad Razaqzada, Market Analyst at StoneX Bullion. While USD dominance momentarily halted gold's surge, Razaqzada remains steadfast in his long-term bullish outlook.
Core PCE Price Index and Beyond
The upcoming Core PCE Price Index stands as a significant risk event for both the greenback and XAU prices. Razaqzada emphasizes its potential impact on market sentiment, with a keen eye on forthcoming economic indicators shaping the USD's trajectory.
Examining the technical landscape, Razaqzada underscores gold's resilience amidst recent profit-taking and USD vigor. Key support levels, notably at $1984, offer crucial insights into XAU's long-term trajectory, with buyers poised to capitalize on market dips.
Identifying Crucial Support and Resistance Levels XAU
Razaqzada delineates pivotal support levels, emphasizing the significance of former resistance levels transforming into support zones. Additionally, he highlights key resistance levels, providing insights into short-term directional trades and potential buying opportunities.
As of the latest update, spot gold reflects ongoing volatility, maintaining resilience at $2191 per ounce. Concurrently, the U.S. dollar index experiences fluctuations, underscoring the enduring tug-of-war between gold and the greenback.
In conclusion, amidst near-term USD strength, XAU bullish trajectory persists, driven by a confluence of economic factors and technical indicators. Razaqzada's insights offer a nuanced perspective on navigating the evolving landscape of precious metal trading.
Peter Smith
