XAUUSD, H1
XAUUSD continues to show downward pressure and has now recorded its lowest price since August 12 2021, at $1742 in the Asian session before rebounding significantly to $1757 as Gold also gets a safe haven bid as European stock markets lose over 2.00%. Bears were in control earlier and dominated the market as sentiment was relatively negative following investor caution ahead of the FOMC meeting that starts on Tuesday and concerns over the liquidity crisis of Chinese giant Evergrande. Evergrande shares fell as much as 19% and posted an 11-year low today. Contagion fears from the Evergrande situation have spooked equity trading as yields continue to rally and the notoriously vulnerable third week of September gets underway.
The XAUUSD price fell to $1742 but rebounded following strong support at the S1 pivot at $1744. This area is also an important support level of the 61.8% Fibonacci retracement of the low-high swing of the gold price from August to September 2021. Meanwhile, the daily pivot point is at $1755. The price movement trend is still showing a downward slope since Tuesday last week though the rise is expected to be limited and the combination of strong resistance clusters is in the range of $1760- $1764. The R1 pivot is at $1764 which is also close to the dynamic resistance MA-50. Meanwhile the 50% Fibonacci retracement level is at $1761.
Investors are focused on the outcome of the FOMC meeting on Wednesday evening (18:00 GMT), at which the market expects the FED to announce their tapering plans. The price of XAUUSD is expected to be very volatile and other markets will also be turbulent.
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Tunku Ishak Al-Irsyad
Market Analyst
HF Education Office Malaysia
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