Gold Breaks $2,500: Impact of China-U.S. Talks.
Chinese and U.S. delegations have met in Shanghai for the fifth session of the joint financial working group, addressing key issues such as monetary policy and the resilience of financial institutions. In parallel, Asian stocks have rallied and the dollar has weakened, buoyed by hopes that the U.S. economy will avoid a recession and expectations of interest rate cuts.
Gold has taken advantage of the dollar's weakness and expectations of monetary tightening, rising above $2,500 per ounce and approaching an all-time high of $2,509.69. Since July, gold has pierced key resistance and is currently attempting to break above the highs. With an RSI at 64.80% and the Point of Control (POC) below the current zone, gold could reach $2,600 if the right conditions are met. The trading structure has shown a triple bell in three zones with the most traded being the first: $2,030, $2,167 and $2,330. Although a pullback to the sideways range of $2,421 and $2,283 is possible, the uptrend is still predominant.
On the other hand, oil prices have experienced a drop, with Brent crude down to $79.57 per barrel and U.S. crude down to $76.45, due to concerns about demand in China, which have continued to weigh on the energy market, despite global optimism.
Ion Jauregui - ActivTrades Analyst
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The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
Gold has taken advantage of the dollar's weakness and expectations of monetary tightening, rising above $2,500 per ounce and approaching an all-time high of $2,509.69. Since July, gold has pierced key resistance and is currently attempting to break above the highs. With an RSI at 64.80% and the Point of Control (POC) below the current zone, gold could reach $2,600 if the right conditions are met. The trading structure has shown a triple bell in three zones with the most traded being the first: $2,030, $2,167 and $2,330. Although a pullback to the sideways range of $2,421 and $2,283 is possible, the uptrend is still predominant.
On the other hand, oil prices have experienced a drop, with Brent crude down to $79.57 per barrel and U.S. crude down to $76.45, due to concerns about demand in China, which have continued to weigh on the energy market, despite global optimism.
Ion Jauregui - ActivTrades Analyst
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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