2. Points To Be Covered Today:
• Gold Price Passed The Resistance
• Gold: Shorts At 1798/1802 Need Stops Above 1805
• Gold Is Sell On Rallies
• Gold Technical Overview
• Gold Fundamental Overview
• Gold Or Bitcoin Debate Both Get Smashed
• Gold Price & Chart
• Near-Term Bias Is Bearish, But Technical Confirmation Is
Needed
3. Gold Price Passed The Resistance
• The yellow metal's price passed the resistance
of the 1,800.00 level on Friday morning.
• The 1,800.00 kept the rate from surging since
the start of September 8.
• However, the price almost immediately found
resistance in the 100-hour simple moving
average near 1,805.00.
4. A Bounce Off From Resistance
• In the case that the price passes the 100-hour
simple moving average, the bullion could test the
resistance of the 200-hour SMA at 1,809.50.
• Above the 200-hour SMA, the summer high levels
at 1,830.00/1,835.00 might once again serve as
resistance.
• However, a bounce off from resistance would
possibly look for support in the 55-hour simple
moving average at 1,795.00.
• Below the SMA, the support zone just below the
1,785.00 might provide support.
6. Gold: Shorts At 1798/1802 Need
Stops Above 1805
• Gold Spot spending too much time drifting in
tight ranges this week with little opportunity for
profitable trades.
• Gold has key resistance at 1798/1802 today.
• Shorts here target 1794 & 1788 with minor
support at 1783/81 if we fall that far. Expect
better support at 1778/76.
• Shorts at 1798/1802 need stops above 1805.
• A break higher targets resistance at 1810,
perhaps as far as 181618 for profit taking on any
longs.
7. Gold Is Sell On Rallies
• Gold is making another technical sell pattern in
the midst of the risk on.
• Gold has been the best market to trade in 2021.
• Simply, all trades have been technically aligned
and I personally have made great profits on gold
trades which can also be confirmed by myfxbook
account. 1800-10 is the sell zone.
• If bears could make gold go below 1780 then the
next target is 1750. At this point it's just sold at
rallies.
10. Gold Fundamental Overview
• The US dollar extended its retracement slide
from one-week tops touched on Wednesday,
which, in turn, was seen as a key factor that
benefitted the dollar-denominated
commodity.
• However, a combination of factors held
traders from placing aggressive bullish bets
around gold and kept a lid on any meaningful
upside.
11. Gold Fundamental Overview - I
• The risk-on impulse – as depicted by a strong rally
in the equity markets – acted as a headwind for
the traditional safe-haven XAU/USD.
• The global risk sentiment got a boost
on news that US President Joe Biden and Chinese
leader Xi Jinping spoke for the first time in seven
months.
• Apart from this, a strong rebound in the US
Treasury bond yields, along with expectations for
an imminent Fed taper announcement capped
gains for the non-yielding gold.
12. Gold Fundamental Overview - II
• Investors now seem convinced that the Fed will begin
rolling back its massive pandemic-era stimulus sooner
rather than later amid signs of confidence in the labour
market.
• The US Weekly Initial Jobless Claims released on
Thursday provided further evidence that a sharp
slowdown in hiring during August was due to labour
shortages rather than weak demand for workers.
• This, along with hawkish comments from several Fed
officials, continued fueling market speculations.
13. Gold Fundamental Overview - III
• The fundamental backdrop seems tilted in favour of
bearish traders, though worries about the fast-
spreading Delta variant, so far, has helped limit the
downside for gold.
• This makes it prudent to wait for some strong follow-
through selling before confirming that the recent
strong rebound from the $1,686 region has run out of
steam and positioning for further losses.
• Market participants now look forward to the release of
the US Producer Price Index for some impetus.
15. Gold Or Bitcoin Debate Both Get
Smashed
• In today's stream, Coach Dale said to be
patient about buying Gold $1760-40 as
this is an area of interest.
• Bitcoin still is vulnerable to trade in the
&38 to 36K. SPX posted a 2 Week
Reversal which may mark an important
high!
18. Near-Term Bias Is Bearish, But
Technical Confirmation Is Needed
• After being capped by resistance near
$1835, gold has trended lower, breaking below its
200-day simple moving average mid-week.
• The short-term bias is slightly negative, but to see
a sustained move to the downside,
XAU/USD would have to pierce a key Fibonacci
support in a decisive manner
• This article outlines the key technical levels to
watch out for in gold in the week ahead
19. Development With Bearish Connotations
• After briefly dipping below $1700 in the first half of
August, gold prices rallied substantially through early
September, but buying momentum came to a
screeching halt as the metal approached $1835, an
area where bulls had already
encountered resistance on two previous occasions.
• From those levels, XAU/USD quickly reverted lower,
falling below the 200-day simple moving average by
mid-week, a development with bearish
connotations according to technical analysts.
