FX.co ★ Fanny | XAU/USD, GOLD

GOLD We will discuss the fluctuations in gold prices. Gold maintained its upward trend and reached a new high of about 4572.59, as was anticipated last week. The price has broken the middle of the rising channel and is still in it, indicating further increases to the top of the channel. A short-term sell-off towards at least the lower bounds of the present trend, however, would be possible if there is a comeback at this level. On the daily chart, gold is exhibiting positive momentum with consolidation above 4572.59. The Ichimoku cloud is significantly lower, which is ideal for the bullish trend to continue. Monday's potential decline to 4572.59 might present a more favourable purchasing opportunity. Although the CCI indicator is still rising, it has surpassed its maximum purchase levels, indicating a possible decline. If this occurs, buyers aiming to 4641.59 may have an even better entry point. As exchange rates and possible Fed interest rate choices offer support, gold is predicted to perform well next week. However, the metal may see volatility. Nevertheless, unless a significant event drives demand for this safe-haven asset through the roof over the weekend, I anticipate a correction early this week. However, 4641.59 is a reasonable goal for the upcoming days. The fast support level on the EMA 8 level, which finished at 4607.59, and the anticipated trading range at the start of the week are 4641.59. We are currently witnessing quick increases that are typically not sustainable, therefore a correction seems likely. After correction or stagnation, impulses do occur. I anticipate a recovery to 4586.59 levels. However, the forecast could not be accurate because the market is unpredictable.

GOLD: Following a one-week low during the previous session, gold (XAU/USD) is still on the rise, achieving a new daily high in the $4,668–$4,669 range ahead of Wednesday's opening of the European session. A temporary extension of the US-Iran armistice, which is seen as favorable to commodities, is causing the US dollar (USD) to decline, but investors are still worried about long-standing problems with the Strait of Hormuz. In the meantime, anticipations that the Federal Reserve could be less likely to adopt accommodating measures might limit gains for the non-yielding precious metal and prevent further dollar depreciation. On Tuesday, US President Donald Trump declared that he would prolong the ceasefire with Iran indefinitely, enabling both countries to start peace negotiations to put an end to the conflict. But Iran did not ask for such an extension, according to the Tasnim news agency, which is associated with Iran's Revolutionary Guard. In addition, tensions continue because of the US naval blockade of Iranian ports; Tehran requires the easing of sanctions before beginning peace talks, and Trump has stated that he intends to keep the embargo in place to put pressure on Iran. Geopolitical tensions are maintained by this circumstance, which may contribute to the dollar's continued use as a reserve currency. Technically speaking, traders betting on an XAU/USD rally should be cautious given the decline that broke the $4,900 level last week and the subsequent slide. The intersection of the 61.8% Fibonacci retracement level of the March fall and the 100-period exponential moving average (EMA) on the 4-hour chart represents the precious metal's current technical obstacle. The short-term outlook is still mainly negative in this scenario. The first support level on the downside is located around $4,754.02, or 50.0%. Should negative pressure continue, a sustained breach below this level would reveal the 38.2% Fibonacci retracement support at $4,595.95, opening the door for a deeper decline. On the other hand, once the price confluence zone between $4,760 and $4,765 has been cleared, a more substantial barrier appears at the 61.8% Fibonacci retracement level, which is situated at $4,912.08. If the level is tested, sellers are expected to reclaim control.