Gold price creeps higher following US-China tension.
“Precious metal prices, especially gold, creeps up slightly as tension rises in between US and China.”
Demand for gold rose slightly as tension in between US and China boils over. After US Speaker Nancy Pelosi left Taiwan, China has reportedly deployed several aircrafts and drones near the shores of Taiwan. However, gains on the commodity were limited as several members of the Federal Reserve stoke up expectations for a larger interest rate hikes this year. San Francisco Fed President Mary Daly and Chicago President Charles Evans signaled that inflation has yet to cool and they may initiate more rate hikes to combat rising consumer prices.
Quick recap on XAUUSD
Gold price regained some footing as it attempts to extend prior rebound past 1779.
XAUUSD Weekly Technical Analysis
Gold price rebounds near 1695, a level that was tested previously during 2021.
XAUUSD Daily Technical Analysis
For the time being, gold price is currently testing near the 1779 threshold which coincides with downward trendline.
ORDER: BUY STOP
STOP LOSS: 1765
Target 1: 1815
Target 2: 1830
ZFX Analyst’s Comment
Based on price action that happened last year, gold price may have reached its limit in terms of downside. A successful breakout near 1779 will provide confirmation towards its upside bias thereafter.
Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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