Bullish Data: Gold Holds Firm Above 4,300

Tank

Summary:

U.S. nonfarm payroll data was disappointing, and gold briefly touched the 4,370 level.

BUY XAUUSD

EXP

PENDING

4250.00

Entry Price

4700.00

3900.00

4326.40 -15.41 -0.35%

Pips

PENDING

3900.00

Exit Price

4250.00

Entry Price

4700.00

Fundamentals

Uncertainty surrounding the Middle East crisis and the reopening of the Strait of Hormuz has provided some support for the U.S. dollar as a safe-haven currency. In fact, Iran has reiterated its conditions for fully reopening this key waterway, including an end to the U.S. naval blockade, the lifting of sanctions, and compensation for war damages. Furthermore, Tehran has ruled out direct dialogue with the U.S., citing alleged U.S. violations of the interim peace agreement reached in June. This has kept the geopolitical risk premium in place, supporting the dollar while putting some pressure on gold.

The U.S.-Iran standoff is supportive of crude oil prices. Investors remain concerned that rising energy prices could reignite inflationary pressures and force major central banks to adopt a more hawkish stance. Furthermore, the CME Group’s FedWatch Tool indicates that traders still see a higher probability of the Federal Reserve raising borrowing costs before the end of the year. This outlook continues to keep U.S. Treasury yields elevated, benefiting dollar bulls and supporting the view that gold will depreciate further. However, traders may choose to wait for the latest U.S. inflation data to be released this week. In July, the U.S. economy unexpectedly lost 23,000 jobs, while the previous month’s figure was revised downward from 57,000 to 20,000. This indicates signs of cooling in the U.S. labor market, weakening the case for Fed rate hikes, which in turn puts pressure on the dollar and boosts the price of non-interest-bearing gold.

Technical Analysis

On the four-hour chart, the Bollinger Bands are beginning to widen upward, and the moving averages are diverging upward. the MACD fast and slow lines continue to trade above the 0-axis, and the RSI stands at 73, indicating strong market optimism. On the daily chart, the Bollinger Bands are widening upward, and the moving averages are diverging upward. The MACD fast and slow lines are beginning to return above the 0-axis, signaling a shift from bearish to bullish sentiment. With the RSI at 66, market participants are predominantly buying. Strategically, look to go long on dips.

Bullish Data: Gold Holds Firm Above 4,300_1

Bullish Data: Gold Holds Firm Above 4,300_2

Trading Recommendation

Trading Direction: Long

Entry Price: 4250

Target Price: 4700

Stop-Loss Price: 3900

Support Levels: 3900, 3600, 3500

Resistance Levels: 4300, 4400, 4600

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Bullish Data: Gold Holds Firm Above 4,300

Risk Disclosure