03/12/2023
XAU/USD FUNDAMENTAL FORECAST
Gold prices turned higher on Friday after US ISM manufacturing PMI’s disappointed followed by Fed Chair Jerome Powell providing some less aggressive messaging, possibly hinting at the peak of the Fed’s hiking cycle. Although Mr. Powell attempted to refrain from sounding overly dovish, market did not take heed to these sentiments. Some key statements include:
“Fed Funds range well into restrictive territory.”
“It is ‘premature’ to say monetary policy is restrictive enough.”
“I expect spending and output to slow over the next year.”
CRD - Dailyfx.com
TECHNICAL ANALYSIS
GOLD PRICE DAILY CHART
Chart prepared by Warren Venketas, TradingView
Daily XAU/USD price action looks to head up towards the March 2022 and May 2023 resistance zone around the 2081.82 level. The Relative Strength Index (RSI) is deep within overbought territory and could hint at a pullback lower. That being said, bulls will be looking at the looming golden cross formation that could extend the recent rally.
Resistance levels:
2081.82
Support levels:
2048.79
2000.00
1987.42
1950.00
CRD - Dailyfx.com
GOLD IG CLIENT SENTIMENT: MIXED
IGCS shows retail traders are currently net SHORT on GOLD, with 53% of traders currently holding long positions.
