Gold last week has seen its peak performance in seven months within a span of a week. The question that remains is, after this upward rally (AR) and breaking the uptrend, when will we see a price correction? The answer is likely to be determined by the market opening on Monday. The situation was exacerbated even further in Palestine and Gaza over the weekend. This may lead to a slight drop in gold prices since this is not a local issue. Even if the US gets involved, we can’t deny that the upcoming war’s effects may not be significant.
On the other hand, the Fed released a PDF last week discussing how they mostly agree on increasing the interest rate. If this happens, it will likely lead to a decrease in gold prices. It’s well-known that when this occurs, people tend to put their money in banks because they will be getting a better Return on Investment (ROI).
To conclude my statement, I will be anticipating the market opening on Monday to set further goals.
If you wanna know I am currently selling gold from the current price of 1932 looking for a tp around 1880 and tp2 1865
To begin with, let me say you had a great analysis here; great job!
But to say you already holding a sell position is looks a panic position and counter trending to me. Why not wait for confirmation before selling?
Have you heard of the word “Distribution”? The thing is in trading, in the absence of confirmation, there’re questions of what if.
What if instead of the price coming down upon testing your resistance area, it enters a distribution phase and then makes a true breakout?
Your analysis is good, great job once again. But you holding a sell position is a no no for me.
Hello @jordanwallstreet I hope you are doing well.
I’d like to kindly suggest you focus/see things from the Daily TF.
Yes, you can use the h1 for entries but the key levels are mostly in the Daily TF.
The technicals are nice when you are on the correct spot with the fundamentals.
For the interest rate hikes you are correct, but you are forgetting a Geopolitical event that takes place at the moment in the Middle East.
Gold is safe heaven. USD also, but at this moment you must be extremely cautious.
Also about the interest rates you have it wrong, the interest rates are for how much interest the Central banks are going to loan the commercial banks and from the commercial banks you and I are going to get a loan.
So, the commercial bank is going to get the loan with 5.5%(USD rates atm) and from the commercial maybe I take the loan with 6.5% or higher.
In that way, the people pay a higher amount of money and this is how the banks collect back the money and “kill” inflation because they remove the money from the streets.
Check also how this pair behaved with similar Geopolitical events in Eastern Europe 1.5 years ago and be mindful and extremely careful.
