In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the XAUUSD for 23rd May 2024.
Key Takeaways
- Federal Reserve meeting minutes: Today the Federal Reserve released the minutes of the latest interest rate resolution meeting. Officials unanimously hope to maintain interest rates at a high level to ensure that the inflation rate drops to the target level. The delay in implementing easing policies has put pressure on the rising gold price.
- Central bank slows down purchases: The central bank’s purchases of gold show signs of slowing down. China’s overseas physical gold purchases fell to 136 tons in April, a month-on-month decrease of 30%. Investors should continue to pay attention to the macro trends of escalating regional conflicts and central bank gold buying.
Technical Analysis
Daily Chart Insights
- Stochastic Oscillator: The indicator sends a short signal after the overbought area, suggesting that the current exchange rate has greater downward momentum. At the same time, there is a divergence between the exchange rate and the momentum indicator, and the gold price may have the possibility of a deep adjustment.
- Support price: Gold has a clear upward trend line, and the support price is also near the 33-day moving average. If it falls below this joint support price, gold prices may form an M-top pattern.
1-hour Chart Analysis
- Stochastic Oscillator:The indicator enters the oversold area, indicating severe short-term selling pressure on gold prices. Wait for the price to leave the oversold area and focus on short trading opportunities.
- Support price: Although the price of gold fell below the green 200-period moving average, the short-term moving average group still did not cross the long-term moving average, so the gold price has a certain probability of rebound, and the downward channel line also provides certain support.
Pivot Indicator
- According to the trading central in Ultima Markets APP, the central price of the day is established at 2394,
- Bullish Scenario: Bullish sentiment prevails above 2394, first target 2406, second target 2418;
- Bearish Outlook: In a bearish scenario below 2394, first target 2364, second target 2354.
Conclusion
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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.
