empty
 
 

Forex Analysis & Reviews: XAU/USD: A return to the bull market zone?
time 01.12.2022 03:30 PM
time Relevance up to, 03.12.2022 02:11 PM

This image is no longer relevant

After the speech of Federal Reserve Chairman Jerome Powell on Wednesday, the dollar continued to weaken on Thursday, and prices for precious metals, in turn, continued grow. Thus, the price of gold is developing a "bullish" momentum above the key support levels 1759.00, 1770.00, moving towards the psychologically significant and local resistance level 1800.00.

As you know, gold quotes are extremely sensitive to changes in the monetary policy of the world's leading central banks, and especially the Fed. Given the high risks of a recession in the economy and continued inflation growth, as well as against the backdrop of Powell's softer rhetoric, the price of gold and the XAU/USD pair continue to rise, also taking advantage of the weakness of the dollar. Gold does not bring investment income but is in active demand during geopolitical and economic uncertainty, and a protective asset in the face of rising inflation.

A breakout of the 1759.00 key resistance level marked the return of XAU/USD to the long-term bull market zone.

This image is no longer relevant

Today, market participants will pay attention to the publication (from 13:30 to 15:00 GMT) of a whole block of important macro statistics for the United States. If it turns out to be positive, it will give dollar buyers a chance to take a breath. In the meantime, the dollar remains under pressure waiting also for the publication on Friday of the official report on the US labor market for November.

After a weaker ADP report with data on the number of new jobs created in the private sector of the US economy (employment in November improved by 127,000 against the forecast of 200,000 and the previous value of 239,000), market participants will be more cautious about the publication on Friday of the official report of the US Department of Labor. And although the first Friday of the month, when the monthly data of the US Department of Labor is traditionally released, is often called "pay day" by traders, the most cautious of them will probably prefer to stay out of the market on this day due to the traditionally expected sharp increase in volatility during the publication of this report.

Jurij Tolin,
Analytical expert of InstaForex
© 2007-2023
EURUSD
Euro vs US Dollar
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Start trade
Start trade

InstaForex分析评论将让您充分了解市场趋势! 作为InstaForex的客户,您将获得大量的免费服务以实现有效的交易。

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $1000 more!
    In February we raffle $1000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

The euro sets a bad example

The European Central Bank was late to the party and is now trying to convince investors that it will be the last to leave. In other words

Marek Petkovich 13:02 2023-02-05 UTC+2

GBP/USD: brief results and expectations

The Bank of England raised its rate by 50 bps to 4%, the highest level since October 2008. However, the Bank forecasts that annual U.K. inflation will fall from

Jurij Tolin 12:59 2023-02-05 UTC+2

Analysis of the trading week of January 30–January 3 for the GBP/USD pair. COT report.

The GBP/USD currency pair has also begun a very strong decline this week. Despite its drop from about a month ago, we also anticipated a decline in the value

Paolo Greco 18:15 2023-02-04 UTC+2

Analysis of the trading week of January 30–February 3 for the EUR/USD pair.

The EUR/USD currency pair has attempted to maintain its recent upward trend once more this week, although, during the past two weeks, it has begun to noticeably drop. About

Paolo Greco 17:39 2023-02-04 UTC+2

The U.S. dollar is losing its appeal as a safe haven: what does this mean for the EUR/USD pair?

A strong U.S. dollar was one of the main headwinds for gold and all precious metals last year as investors embraced the currency as a safe haven. But this forecast

Irina Yanina 16:42 2023-02-03 UTC+2

Weak US jobs data will support equities and put pressure on dollar

Markets continued to take advantage of the positive sentiment that emerged after the FOMC meeting on Wednesday. This is not surprising since the start of the new year, they have

Pati Gani 13:22 2023-02-03 UTC+2

GBP/USD. Overview for February 3. 2023

The GBP/USD currency pair increased as well, though far less significant than the EUR/USD pair. Additionally, this situation ought to have caused traders to pause. Why is the euro strengthening

Paolo Greco 11:20 2023-02-03 UTC+2

EUR/USD. Overview for February 3, 2023

The EUR/USD currency pair was moving in multiple directions on Thursday, but the previous evening it left the side channel it had been in for the previous three weeks

Paolo Greco 10:47 2023-02-03 UTC+2

Bitcoin rallies on Powell's remarks

Bitcoin's 40% rally in January, the best in a month since 2020, massive capital inflows into cryptocurrency-focused ETFs, and a $250 billion increase in market capitalization over the past four

Marek Petkovich 10:17 2023-02-03 UTC+2

EUR/USD: demand falls despite latest ECB rate hike

The ECB announced a 0.5% increase in its interest rate and explicitly said that there could be a similar one in March, depending on the economic data that will come

Jozef Kovach 08:21 2023-02-03 UTC+2
现在无法通话?
提出您的问题,用 在线帮助.