GOLD - Consolidation before resistance at 4470. Bullish trend
FX:XAUUSD resumes growth and tests 4470, an important resistance level, amid a weakening dollar caused by expectations of further easing of Fed policy and continuing geopolitical uncertainty.
Expectations of a Fed rate cut intensified after the release of weak ISM Manufacturing PMI data.
Geopolitical risks have temporarily receded into the background, but remain a potential catalyst for a new wave of demand for safe-haven assets.
Attention is shifting to US labor market data (ADP report and JOLTS vacancies on Wednesday, NFP on Friday). Weak employment figures could increase pressure on the dollar and support gold.
Important nuances: China and Russia's reaction to US actions in Venezuela, as well as the open conflict between Russia and Ukraine.
Further dynamics will depend on employment data and a possible escalation of the geopolitical situation. A break above $4470 will open the way to testing higher levels.
Resistance levels: 4470, 4488, 4519
Support levels: 4440, 4430, 4400
If the metal does not pull back from 4470 and continues to storm the resistance, then attempts to continue growth from 4470 can be considered. Otherwise, the market may test 4440-4430 before rising (long squeeze). Within the current cycle, gold has a chance to test its ATH.
Best regards, R. Linda!