Crucial Days for Gold

Crucial Days for Gold

2023-05-10 • Updated

Gold prices have stabilized at around $2,020 ahead of Tuesday's trading session, following last Friday's dip. Recent fluctuations in risk sentiment have been the driving force behind the pricing of the precious metal. How does this look on the charts? Let’s find out.

Treasury yields have increased across the board since the Federal Open Market Committee raised its target rate by 25 basis points to 5-5.25% last week. Similarly, real yields appear to have moved with an inverse correlation to the recent gold price. The gold price has been influenced by Wednesday's US CPI data for clues on the Fed's rate path going forward, and the market is anticipating headline inflation of 5.0% year-on-year to the end of April.

US Dollar - H4 Timeframe


The US Dollar based on the price action from the charts is currently consolidating inside a wedge pattern. As we look forward to the CPI figures and the aftermath of the publication, I am confident we should get to see a break out of the wedge pattern - a positive sign for trading opportunities. It is on this note that I will personally be following the price action in hopes of a clear breakout soon. In the meantime, my sentiment is that price will continue to tow its recent bearish path and possibly create a new low on the H4 timeframe.

Analyst’s Expectations: 

Direction: Bearish

Target: 101.248

Invalidation: 101.841

XAUUSD - Daily Timeframe


The daily timeframe on Gold (XAUUSD) is clearly bullish; as we can deduce from the recent break above the high I marked with a horizontal arrow. The rectangle overlapping the trendline support represents a drop-base-rally demand zone to which price has already reacted. Now let’s check the lower timeframe for confirmation.

XAUUSD - H1 Timeframe


Now that we’ve confirmed the price action on XAUUSD to be bullish from the daily timeframe, what remains now is to establish the appropriate point of entry on the lower timeframe based on support and resistance levels. Looking at the 1-hour chart, I can see price consolidating to form a rising channel so my entry will be based on either of the two plotted support trendlines. The first one has extra confirmation based on the 50-period moving average, while the other one fits well within the vicinity of the 200-period moving average.

Analyst’s Expectations: 

Direction: Bullish

Target: $2043.57

Invalidation: $2014.50


The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.


You can access more of such trade ideas and prompt market updates on the telegram channel.


Is the Euro Set to Recover Yet?
Is the Euro Set to Recover Yet?

Here's the scoop: The Bank of England (BOE) is set to accelerate the pace at which it shrinks its balance sheet, according to one of its deputy governors. Currently, the BOE is unwinding about £20 billion of quantitative easing every three months. The goal is to reduce the stock by around £80 billion per year through active sales and maturing assets.

CAD: What’s Next?
CAD: What’s Next?

It seems like the Canadian consumer has a firm grip on their wallet, which is no surprise given the current economic climate. Inflation in April crept up from 4.3% to 4.4%, adding to the financial woes.

How Will CPI Change the Market?
How Will CPI Change the Market?

On Wednesday, the US dollar weakened in anticipation of the US CPI data, which could influence market exposure. A Bloomberg survey predicts a year-on-year read of 5.0% to the end of April. Market sentiment is affected by the US debt ceiling and issues with regional banks. While the major APAC equity indices are...

Latest news

Gold’s Next Move Could Be Huge!
Gold’s Next Move Could Be Huge!

Let's dive into the world of gold. Currently, the price of gold, represented by XAUUSD, is stuck in indecision, hovering around the $1,975 mark. The market is anxiously awaiting two important factors: the release of the Federal Reserve's meeting minutes and the extension of the US debt ceiling.

What to Trade in June
What to Trade in June

Hey guys, this is the last full trading week in May, and many forward-looking individuals like myself are already preparing themselves to seize whatever opportunities June may have in store. On this note, I will review a few commodities that have satisfied my quest for swing-trading opportunities in the coming month. Follow me!

Will GBP Recover Now?
Will GBP Recover Now?

The Bank of England (BoE) has dramatically shifted its economic forecasts. They no longer expect a recession in the UK and have upgraded their growth projections. This year, the BoE predicts GDP growth of +0.25%, a significant improvement from previous expectations. Next year's forecast is even more optimistic, with a projected growth of 0.75%.

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera