Gold prices have witnessed a slight decrease of 1% over the past week and a 2% dip since the start of 2024, currently standing near $2,030. This dip in gold prices may be attributed to various factors, including market uncertainties and changes in investor sentiment. The overall market structure on the daily timeframe of XAUUSD appears to be largely bullish, but the failure to create a higher high before the onset of the recent retracement suggests the possibility of a new lower low being formed. The 100-day moving average is a key target in this scenario.
In contrast to gold, the price of silver has surpassed $22 per ounce but experienced a notable 4% drop in the week and a 6.5% decline in the year thus far. This decline in silver prices could be attributed to various factors, including a decrease in industrial demand and a potential shift in investor preferences towards other investment options. It is essential to closely monitor the silver market to assess its future trajectory.
The upcoming scrutiny of economic data will significantly influence the metal markets. Of particular importance is the release of the Q4 US GDP report on Thursday, which is projected to indicate a growth rate of 2.4%. This positive economic data may potentially allow the Federal Reserve to maintain higher US interest rates, demonstrating the country’s economic flexibility. Investors and traders should closely monitor these economic indicators to gauge their impact on the precious metals market.
On the 4-hour timeframe of XAUUSD, the price is poised to break out of the wedge pattern. It is anticipated that the price will break out lower, as the convergence of three moving averages forms a united resistance level while maintaining their bearish array. Traders and investors should exercise caution and wait for the breakout of the trendline to establish a suitable position for a potential short entry. The analyst’s expectation for the direction of XAUUSD is bearish, with a target of $1997.55 and an invalidation point at $2037.14.
While considering these opportunities in the precious metals market, it is crucial to remember that trading CFDs comes with inherent risks. To enhance the likelihood of success, it is essential to manage risks properly. Traders should conduct due diligence, thoroughly research market conditions, and create a comprehensive risk management strategy. This approach will help minimize costly mistakes and maximize overall trading performance.
The gold and silver markets are experiencing fluctuations in prices. Gold prices are likely to witness a modest decrease, with a target at the 100-day moving average. Silver prices have experienced a decline, influenced by factors such as industrial demand and investor preferences. Economic data and market analysis play a pivotal role in shaping the trajectory of these precious metals. Traders and investors must exercise caution and employ risk management strategies to navigate the volatile market effectively.
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