XAU/USD: Markets deal with volatility

Summary:

Gold market performance is affected by many factors including economic data, the strength of the US dollar and interest rates.

BUY XAUUSD

Close Time

CLOSED

1915.38

Entry Price

1976.00

1908.79

4303.11 -53.19 -1.22%

197.8

Pips

Profit

1908.79

1935.16

Exit Price

1915.38

Entry Price

1976.00

Fundamentals

The gold market was hit and miss on Thursday after an unexpected ADP reading almost doubled from expectations.

This triggered a well-deserved market reaction, with traders buying the US dollar on hopes of a rate hike. Gold was under downward pressure as a result.

Friday's release of NFPs has shed more light on the direction of the US dollar, which will have a significant impact on the future direction of the gold market.

Technical Analysis

The market has recovered from both the 200-day exponential moving average and the 61.8% Fibonacci level. This suggests that the market is likely to remain volatile in the future, but it looks like it may move higher in search of stability. The 200-day EMA is an important indicator that attracts a lot of attention from market participants. If the buying pressure continues, it will likely target and eventually break out of $1,950 levels. In such a scenario, the market could target the psychological milestone of $2,000.

Trading Recommendations

Trading Direction: long

Entry Price: 1915.38

Target Price: 1976

Stop Loss: 1908.79

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