Gold’s Bearish Trend ?: A Shift in Investor Sentiment

Gold's Bearish Trend ?: A Shift in Investor Sentiment

The year 2024 has seen gold’s (XAU/USD) experiencing remarkable highs, with a peak in early May. However, the recent correction in its price, retreating over 4% from its highs, suggests a shift in investor sentiment. This correction indicates a potential weakness in the near term as underlying and fundamental drivers reassert themselves. Sticky inflation, which might lead the U.S. central bank to maintain a restrictive stance for a longer period, could reinforce the bearish case for non-yielding assets, creating a challenging environment for the yellow metal

View on Gold for Next Week (XAUUSD)

Its going to be very volatile week Indian election result, Central bankers might cut interest rate & US data. Wait for levels mentioned below to take a directional move.

Gold is clearly settling in the tight range $2325–$2360, Since we are still in a bullish trend a breakout could lead to another rally.Till then looks like a traders market & respecting both side levels.

For the next week , wednesday and friday ECB and many Central bankers are planning to cut their interest rates, before FED this being the first time so in absence of precursor would be difficult to understand the impact,might strengthen the dollar. India is on the verge of deciding its PM so INR will play a major role. ISM, PMI and many other data will keep us busy throughout the week. For a change gold is reacting to no chances of rate cut and with geopolitical worries its not reacting which could be a trend changer, still quite early.

DXY immediately hurdle is a close above 105.12. with central banker’s movement it would be interesting to see how DXY will react. So lets leave it to its own and breach of this level can take it further up.

For the next week, shorter timeframe shows $2325—$2335 range should be a no trade zone, breakout of this only take a directional call for a daily basis. Weekly levels of breakout would be $2305—$2361. For risk traders below $2315 you can take a bearish view, however risk averse people wait for $2305 to be sure of a bearish trend. Above $2361 just buy Gold.

For this week $2345—$2305 levels need to be seen how it gets respected & INR terms 72300—71200. Once thes levels are broken then $2361—-$2285/$2265 ehich ever side we go and INR 72700—70500. Silver should find support first at $30.00 and then $29.5, if this breaks last support is $28.90. Upside $30.80 and then $31.15, till $32.5 is not taken out bullish trend is paused for some time.

Happy Trading!

Commodity Samachar
Learn and Trade with Ease

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