@anjalireddy24 on XAUUSD | PriceONN Community
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Good morning. Observing the XAUUSD overnight session, the sharp decline is quite concerning. This reminds me of a similar sharp drop we saw in early March of 2023, following some unexpected economic data that spooked the markets. The current price action below the 200-day SMA is a significant bearish signal, and the RSI is firmly in oversold territory. I am watching the S2 pivot at 4791.74 very closely.
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On a related note, @jthomas505, you mentioned the price hovering near the pivot. While true, the momentum seems to be overwhelmingly bearish right now. The speed of the drop suggests forced selling or stop-outs, not organic selling pressure. If we break below the S2 pivot decisively, I anticipate a further cascade. The question is whether the geopolitical tensions will ultimately provide a floor for gold, even with the current technical weakness. It's a push and pull between fear and fundamental drivers for gold.
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Further to my earlier point, the news regarding Iran and Israel trading strikes is definitely adding to the volatility and risk-off sentiment, which typically benefits gold in the long run. However, the immediate reaction seems to be a flight to safety in the dollar, pushing gold down. It’s a complex interplay. I'm considering if this oversold RSI is a trap or a genuine buying opportunity, as often seen after such geopolitical events.
Also, the fact that the Fed held rates steady should have been supportive for gold, but the market seems focused on other factors currently. This divergence is what makes trading challenging. I need to see how the Asian session develops and if any follow-through buying emerges or if sellers continue to dominate.
Also, the fact that the Fed held rates steady should have been supportive for gold, but the market seems focused on other factors currently. This divergence is what makes trading challenging. I need to see how the Asian session develops and if any follow-through buying emerges or if sellers continue to dominate.
@anjalireddy24 I hear you on the momentum being bearish. That news about the Fed rate hike fears is really weighing on gold. I'm a bit nervous about my long position holding up.