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Gold Technical Analysis - Gold Trading: 2021-09-30
Gold Technical Analysis Summary
Below 1721.51
Sell Stop
Above 1787.11
Stop Loss
| Indicator | Signal |
| RSI | Neutral |
| MACD | Sell |
| Donchian Channel | Sell |
| MA(200) | Sell |
| Fractals | Sell |
| Parabolic SAR | Sell |
Gold Chart Analysis
Gold Technical Analysis
The technical analysis of the XAUUSD price chart in daily timeframe shows the XAUUSD, D1 is retracing lower under the 200-day moving average MA(200), which is falling. We believe the bearish momentum will continue after the price breaches below the lower boundary of Donchian channel at 1721.51. This level can be used as an entry point for placing a pending order to sell. The stop loss can be placed above the upper Donchian boundary at 1787.11. After placing the order, the stop loss is to be moved every day to the next fractal high, following Parabolic signals . Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level (1787.11) without reaching the order (1721.51), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.
Fundamental Analysis of Precious Metals - Gold
US Treasury bond yields continue to increase which is weighing on gold. Will the XAUUSD price retreat continue?
US Treasury bond yields continue to increase buoying the Dollar. At its September meeting the Federal Reserve signaled that a rate hike could be warranted as early as next year and that it is about to reduce how many bonds it is buying each month. Half of Fed policymakers project at least one interest rate increase in 2022 and three policymakers indicated at least two hikes in the year, according to the Summary of Economic Projections. The quarterly projections showed that half of officials (9 out of 18) preferred to hike interest rates in 2022, versus just seven in June. At the same time officials see their preferred measure of price gains - Personal Consumption Expenditures index rising 4.2 percent in 2021 — up from their previous June projection of 3.4 percent. Higher interest rates mean higher opportunity cost of owning gold which is not an income-generating asset. So higher rate expectations are bearish for XAUUSD.
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