Gold price (XAU/USD) is currently encountering resistance near $1,945.00 during the Asian session. The precious metal is poised to move higher as the US Dollar Index (DXY) has retraced from its recent pullback to around 104.20. The approval of a raise in the US debt ceiling has put downward pressure on the USD index.
It is evident that the United States economy may face a downgrade in its long-term credibility by credit rating agencies due to higher debt levels, which increases the risk of default. This development is likely to have a negative impact on the US Dollar Index and US equities, while positioning gold as a safe-haven asset. Consequently, the bullish outlook for the gold price appears highly favorable.
From a technical perspective, our analysis suggests the possibility of a new bearish setup if the price manages to break below the dynamic trendline of the bearish triangle.
Please note that market conditions are subject to change, and it is important to closely monitor price movements for updated trading decisions.
It is evident that the United States economy may face a downgrade in its long-term credibility by credit rating agencies due to higher debt levels, which increases the risk of default. This development is likely to have a negative impact on the US Dollar Index and US equities, while positioning gold as a safe-haven asset. Consequently, the bullish outlook for the gold price appears highly favorable.
From a technical perspective, our analysis suggests the possibility of a new bearish setup if the price manages to break below the dynamic trendline of the bearish triangle.
Please note that market conditions are subject to change, and it is important to closely monitor price movements for updated trading decisions.
