In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the XAUUSD for 21st February 2024.
Key Takeaways
- Citibank: Citibank commented that central banks around the world increased their gold purchases, to be well prepared for stagflation or economic recession.
- JPMorgan Chase: With optimistic expectations of interest rate cuts within the year, JPMorgan Chase said that the U.S. economy is expected to achieve a “soft landing” and the commodity market may “repeat 1995”, with prices rising by 20%.
- JPMorgan Chase expects the US economy to achieve a “soft landing”, coupled with interest rate cuts, gold price may rise by 20% at the end of the year.
Technical Analysis
Daily Chart Insights
- Stochastic Oscillator: Following the formation of bullish signal around the oversold region, the indicator’s signal line rose steadily, inching towards the mid level of 50. This suggests possible retracement of gold price in the short-term.
- Resistance Area: Gold price rebounds from the lower level, inching towards the 33-day and 65-day moving average. Both lines are situated at the lower boundaries of bullish trendline. In the event of a break above around this level, gold price may extend its ascension thereafter.
1-hour Chart Analysis
- Stochastic Oscillator: The indicator forms bearish signal in the oversold region yesterday, suggesting an extension of downside for the time being.
- Alternative Trend Line: Depreciation of gold price below the green bullish trendline may possibly be halted by the 33-day moving average situated right below. Due to lack of a signal from price action, we suggest waiting for more signals before entering the market.
Pivot Indicator
- According to the trading central in Ultima Markets APP, the central price of the day is established at 2022.00,
- Bullish Scenario: Bullish sentiment prevails above 2022.00, first target 2031.00, second target 2038.00;
- Bearish Outlook: In a bearish scenario below 2022.00, first target 2017.00, second target 2013.00.
Conclusion
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Disclaimer
Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.
