radex78
Active Member
- Messages
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- Joined
- Nov 22, 2014
- Messages
- 2,381
- Reaction score
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Gold prices are still under pressure ahead of the Fed rate decision
Yesterday's gold price drew a bearish candle with a small body after previously drawing an indecision candle. Price formed a high of $2658, a low of $2533, and closed at $2644, slightly below the middle band line.
Last week the price of gold began to decline from around $2725 with two consecutive downward candles due to the strengthening of the USD and the influence of the Chinese economy.
Yesterday, gold prices continued their decline amid US economic data which released retail sales rising 0.7%, better than expectations of 0.6%. US Census Bureau reports Advance estimates of U.S. retail and food services sales for November 2024, were $724.6 billion, an increase of 0.7 percent (±0.5 percent) from the previous month, and up 3.8 percent (±0.5 percent) from November 2023.
The dollar index (DXY) has shown a consolidation value in the range of 106.937, slightly up from a low of 106.698. The US dollar traded mixed across foreign exchange exchanges strengthening against commodity currencies such as CAD and AUD and barely falling against European currencies, as the Federal Reserve's monetary policy announcement drew closer. The Fed will announce its decision on monetary policy on Wednesday and is widely anticipated to cut its benchmark interest rate by 25 basis points. The focus will then turn to the Summary of Economic Projections (SEP) and Chairman Jerome Powell's statement on what may happen in 2025.
In China, annual Industrial Production rose 5.4% as expected from 5.3% previously. However, retail sales data showed 3.0% lower than the previous 4.8%, even below market expectations of 5.0%.
Apart from waiting for the important momentum of the Fed's interest rate decision, investors will also focus on UK economic data. The annual CPI is forecast to rise 2.6% from the previous revision of 2.3%.
XAUUSD D1
The price of gold on the daily timeframe is now moving near the middle band line which is often a consolidation line. Bollinger bands drawing a flat channel with deflating band spacing indicates reduced volatility in the sideways market.
The 50 MA above the price draws a flat channel indicating the trend transition is more likely to the downside. The 200 MA is far below the lower band drawing an upward channel indicating an uptrend market.
The VB High TDI indicator shows a value of 61 and VB Low shows a value of 35. The difference of 26 reflects the volatility value in the daily timeframe.
Market Base Line points to a value of 48 with a descending channel, meaning the weight of bearish is greater than bullish.
The RSI Price Line shows a value of 48 with a descending channel crossing the TSL indicating a market downtrend.
Trade Signal Line pointing to the value 53 with a flat channel crossing the MBL from the downside indicates a sideways market with upside potential.
XAUUSD H4
Gold price in the H4 timeframe is now moving between the middle and lower band lines. Bollinger bands draw a descending channel with deflating bands indicating a downtrend with reduced volatility.
MA 50 above the middle band line drawing a flat channel indicates a sideways market with downward potential. However, this indicator has confirmed the golden cross signal when the price was around $2664. The 200 MA below the 50 MA draws a descending channel indicating a market downtrend.
The VB High TDI indicator shows a value of 77 and VB Low shows a value of 27. The difference of 50 reflects the high volatility value in the H4 timeframe.
Market Base Line points to a value of 52 with a descending channel, meaning the weight of bullish is greater than bearish.
The RSI Price Line points to a value of 40 with an upward channel indicating an uptrend market.
Trade Signal Line points to a value of 37 with a flat channel indicating a sideways market.
Yesterday's gold price drew a bearish candle with a small body after previously drawing an indecision candle. Price formed a high of $2658, a low of $2533, and closed at $2644, slightly below the middle band line.
Last week the price of gold began to decline from around $2725 with two consecutive downward candles due to the strengthening of the USD and the influence of the Chinese economy.
Yesterday, gold prices continued their decline amid US economic data which released retail sales rising 0.7%, better than expectations of 0.6%. US Census Bureau reports Advance estimates of U.S. retail and food services sales for November 2024, were $724.6 billion, an increase of 0.7 percent (±0.5 percent) from the previous month, and up 3.8 percent (±0.5 percent) from November 2023.
The dollar index (DXY) has shown a consolidation value in the range of 106.937, slightly up from a low of 106.698. The US dollar traded mixed across foreign exchange exchanges strengthening against commodity currencies such as CAD and AUD and barely falling against European currencies, as the Federal Reserve's monetary policy announcement drew closer. The Fed will announce its decision on monetary policy on Wednesday and is widely anticipated to cut its benchmark interest rate by 25 basis points. The focus will then turn to the Summary of Economic Projections (SEP) and Chairman Jerome Powell's statement on what may happen in 2025.
In China, annual Industrial Production rose 5.4% as expected from 5.3% previously. However, retail sales data showed 3.0% lower than the previous 4.8%, even below market expectations of 5.0%.
Apart from waiting for the important momentum of the Fed's interest rate decision, investors will also focus on UK economic data. The annual CPI is forecast to rise 2.6% from the previous revision of 2.3%.
XAUUSD D1
The price of gold on the daily timeframe is now moving near the middle band line which is often a consolidation line. Bollinger bands drawing a flat channel with deflating band spacing indicates reduced volatility in the sideways market.
The 50 MA above the price draws a flat channel indicating the trend transition is more likely to the downside. The 200 MA is far below the lower band drawing an upward channel indicating an uptrend market.
The VB High TDI indicator shows a value of 61 and VB Low shows a value of 35. The difference of 26 reflects the volatility value in the daily timeframe.
Market Base Line points to a value of 48 with a descending channel, meaning the weight of bearish is greater than bullish.
The RSI Price Line shows a value of 48 with a descending channel crossing the TSL indicating a market downtrend.
Trade Signal Line pointing to the value 53 with a flat channel crossing the MBL from the downside indicates a sideways market with upside potential.
XAUUSD H4
Gold price in the H4 timeframe is now moving between the middle and lower band lines. Bollinger bands draw a descending channel with deflating bands indicating a downtrend with reduced volatility.
MA 50 above the middle band line drawing a flat channel indicates a sideways market with downward potential. However, this indicator has confirmed the golden cross signal when the price was around $2664. The 200 MA below the 50 MA draws a descending channel indicating a market downtrend.
The VB High TDI indicator shows a value of 77 and VB Low shows a value of 27. The difference of 50 reflects the high volatility value in the H4 timeframe.
Market Base Line points to a value of 52 with a descending channel, meaning the weight of bullish is greater than bearish.
The RSI Price Line points to a value of 40 with an upward channel indicating an uptrend market.
Trade Signal Line points to a value of 37 with a flat channel indicating a sideways market.