Gold : Fundamental Factors
1)Federal Reserve Vice Chair Lael Brainard on Monday emphasized on the need for restrictive monetary policy,
and said that the economic damage of recent rate hikes was yet to be felt.
2) The greenback was also supported by safe haven demand as the Russia-Ukraine conflict worsened. Gold, on the other hand, has seen scant safe haven buying this year, apart from the early days of the conflict.
3) Apart from the Fed, major central banks in Europe and Asia have also embarked on a hiking cycle to combat runaway inflation.
4) Weighing on investors was also a Russian missile attack on Ukraine that killed civilians and knocked out power and heat in cites across the country.
President Vladimir Putin said he had ordered “massive” long range strikes after an attack on the bridge linking Russia to the annexed Crimean peninsula over the weekend,and threatened more strikes in future if Ukraine hits Russian territory.
5) U.S. investors, anxious about rising interest rates and signs of economic weakness, were also cautious ahead of inflation data due out Thursday and the start of
the third-quarter earnings season on Friday.
6) Strong jobs data has strengthened expectations of another 75 basis points rate hike at next month’s Fed meeting, leaving downside risk for global oil demand.
7 ) EU sanctions on Russian crude and oil products will take effect in December and February respectively while the bloc last week gave its final approval for a new batch of sanctions against Russia including a price cap on Russian oil exports.
Gold : Trend is Bearish
Fundamental Range : 1600-1700
Gold : Technical Analysis
Check at Daily Timeframe Support and Resistance for Fibonacci.
Check the timing of trade it might be different for resistance and support at that time.
Resistance Area : 1691.24,1699.51,1712.89
Support area : 1642.83,1656.21,1664.48
Pivot point : 1677.86
Confirm with technical indicators and based on your own technical analysis.
Check investing.com to get more info on what most indicator would display
Check higher timeframe also for more confirmation for entry in Daily timeframe.
The technical indicator display strong buy in Daily and strong sell in weekly and monthly timeframe, where we can entry sell for higher timeframe by following the support area given and vice versa
If want to go for the lower timeframe ,can see what the timeframe display to see the confirmation of trend and entry
Seek for sell or buy opportunity to enter for confirmation or based on your own technical analysis understanding.
Use linear regression to get confirmation trend at daily as they are not available in investing.com
Linear regression shows a downward trend.Can check linear regression trend in weekly and monthly for more confirmation.
Use Bolinger Band Strategy Tester and RSI Strategy Tester to get more confirmation.Check at bigger timeframe for percent profitable to get more confirmation.
The strategy has contradiction , for RSI strategy tester is more supporting towards the down trend in Daily, and if we follow Bolinger Band Strategy Tester , it is more supporting towards uptrend in Monthly.
Gold :Find Sell at the daily chart by using the resistance points and take profit will be at the pivot point, 1714.69
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Disclaimer : This analysis is based on Investing.com and Forexfactory.com. You may follow based on your own discreetion.
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