GOLD's Analysis: Anticipating a Retracement and a New Impulse

29 lis 2023

GOLD's Analysis: Anticipating a Retracement and a New Impulse

Gold prices experienced a robust rally on Tuesday, marking their most substantial single-day gain in over six weeks. The precious metal surged by 1.5% during the day, reaching a seven-month peak at $2052.57

The market witnessed a risk rally, with investor sentiment driving up various assets across the board. This surge was ignited by dovish comments from the Federal Reserve (Fed) during the early US market session, providing the impetus for Gold's upward trajectory on the day.

Federal Reserve Governor Christopher Waller, in particular, made noteworthy remarks on Tuesday. He emphasized that as long as inflation continues its descent toward the Fed's targeted levels, there is no compelling reason to insist on maintaining higher interest rates for an extended period.

In line with fundamental analysis, today's outlook involves anticipating a retracement in the Gold price around the 50% to 61.8% Fibonacci area. This retracement is seen as a potential precursor to a new upward impulse, with the target set around the $2,055 mark. Such technical analysis provides insights into potential price movements based on historical patterns and key levels derived from Fibonacci retracements.

The convergence of both fundamental and technical analyses allows market participants to gain a comprehensive understanding of the factors influencing Gold prices. As economic conditions, central bank policies, and market sentiment continue to evolve, a multifaceted approach to analysis becomes crucial for making informed trading decisions in the dynamic environment of precious metals.

Our preference

Below 2060.50 look for further downside with 2028.00 & 2018.00 as targets before a new Bullish impulse.