Gold Analysis 29/09: Gold May Hold Gains (Chart)

(MENAFN- Daily Forex) Today's Gold Analysis Overview:

• The overall of Gold Trend: Remains Bullish.
• Today's Gold Support Levels: $3725 – $3700 – $3630 per ounce.
• Today's Gold Resistance Levels: $3780 – $3800 – $3845 per ounce.

Today's Gold Trading Signals:

• Sell gold from the $3800 resistance level with a target of $3600 and a stop-loss at $3840.
• Buy gold from the $3660 support level with a target of $3800 and a stop-loss at $3630.

Technical Analysis of Gold Price (XAU/USD) Today:

Keep in mind that the gold trading market may hold its current historical record gains near the $3800 per ounce resistance until markets and investors react to the announcement of the US jobs figures. These figures will have a strong impact on the future policies of the US Federal Reserve, and consequently on the dollar price and then the gold price index. Prior to that, according to gold trading platforms, spot gold prices are settling around the $3758 per ounce level, which was the closing price for last week's performance. During that same week, the price of gold jumped to the $3791 per ounce resistance level.

Overall, based on the monitoring and forecasts of gold analysts, the strong and continuous buying by global central banks supports the gold price, given the concern about the US debt and persistently high inflation. These factors, along with speculative buying, are likely to continue supporting the gold price for some time. However, at the same time, if this week's data shows a significant decline in expectations for a December rate cut, the US dollar will likely rise, which could limit the ascent of the gold price. The opposite is also true.

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In short, unless a radical change occurs, I believe current factors will help gold surpass $3,800 soon.

The movement of the technical indicators supports a bullish outlook for gold. According to the daily chart, the 14-day Relative Strength Index (RSI) is around a reading of 74, which is above the overbought line of 70, and the same applies to the reading of the MACD indicator. As we mentioned before, gold investors will not be concerned by this as much as they are by the continuation of the market's winning factors. The historical $4000 per ounce resistance will remain a legitimate target for the trend if these factors persist, which include geopolitical and trade tensions, strong and continuous central bank purchases of gold bullion, and the threat to the future policies of the US Federal Reserve is the gold market looking forward to in the coming days?

Although this week's economic calendar is relatively light, economists indicate that gold and the US dollar will respond strongly to employment data. Any further weakness in the US labor market will reinforce expectations of a US interest rate cut, supporting gold prices. Optimism remains dominant in gold forecasts for the coming days, especially with the breakout of the $3,800 per ounce resistance.

Overall, if the US labor market report shows further deterioration, this could be a strong driver, as the market will then anticipate faster rate cuts from the US Federal Reserve. However, we expect a slight improvement in the US labor market. With strong market momentum, some analysts have warned of the need for caution at current price levels. While no major correction is expected in gold prices, some analysts have said it may enter a new phase of evaluation.

Gold trading experts believe that recent positive economic data has put the US Federal Reserve in a difficult position, which could limit gold's gains. The Federal Reserve faces a very difficult situation, and US President Trump is likely to continue his personal criticism of Chairman Powell and his colleagues as the next two monetary policy meetings approach. However, I believe the Federal Reserve may choose to emphasize its independence and limit itself to one more interest rate cut this year, something it can easily justify given the strength of the US economy.

EURUSD Chart by TradingViewTrading Tips:

We advise you to continue buying gold during any strong price decline, but never take risks and carefully monitor the market's influencing factors.

As for the gold trading market, it came very close to surpassing the $3800 level at the beginning of this week and has started to rise again after a slight retreat. However, the MACD indicator on the daily chart still suggests that gold prices are overextended, and I believe it is necessary for the price to fall slightly, either through a larger correction or a period of consolidation, before gold can gain enough momentum to reach new record highs. It is likely that the price of gold will reach new record highs before it hits its final peak.

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