Gold is trading above the EMA200 and EMA50 on the 1-hour timeframe and is trading in its ascending channel. I expect the path ahead for gold to be bullish, but a downward correction of gold will lead to the creation of buying positions from the bottom of the channel.
Gold faced renewed selling pressure over the past week—an event that not only dragged down its price but also led many analysts and retail investors to temporarily abandon their bullish short-term outlooks. The return of investor appetite for riskier assets has momentarily weakened gold’s appeal as a safe haven.
Meanwhile, the credit rating agency Moody’s has finally acted, downgrading the U.S. sovereign rating from Aaa to Aa1. This marks the first time that even one of the major agencies no longer sees the U.S. as worthy of the highest credit rating. The downgrade was driven by factors such as an annual budget deficit nearing $2 trillion, a debt burden exceeding GDP, and elevated interest rates that have significantly increased the government’s borrowing costs—conditions which, if persistent, could serve as catalysts for gold’s resurgence.
Adrian Day, CEO of Adrian Day Asset Management, stated: “The downward trend continues. We expect prices to decline further in the coming weeks, especially with the potential restructuring of U.S. trade tariffs. That said, once this phase passes, it could set the stage for one of the best buying opportunities.”
Adam Button, Chief Currency Strategist at Forexlive.com, offered a similar outlook, saying: “Current trading sentiment is clearly tilted toward the downside. The market is searching for a new floor, although it seems likely that support will remain above the key $3,000 psychological threshold.”
Following a week full of economic data, the upcoming week’s calendar appears relatively light, with only a handful of reports likely to influence the markets. Early in the week, traders will face a lack of major catalysts, but focus will gradually shift toward Thursday’s releases: weekly jobless claims, the flash PMI from S&P Global, and existing home sales. Additionally, new home sales data on Friday will be one of the few key events of the week.
Alongside these economic updates, the coming days will feature a wave of speeches from Federal Reserve policymakers. Speakers include Jefferson, Williams, Logan, Kashkari, Barkin, Bostic, Collins, Musalem, Kugler, Daly, and Hsu, culminating with a speech from Fed Chair Jerome Powell on Sunday evening.
Gold faced renewed selling pressure over the past week—an event that not only dragged down its price but also led many analysts and retail investors to temporarily abandon their bullish short-term outlooks. The return of investor appetite for riskier assets has momentarily weakened gold’s appeal as a safe haven.
Meanwhile, the credit rating agency Moody’s has finally acted, downgrading the U.S. sovereign rating from Aaa to Aa1. This marks the first time that even one of the major agencies no longer sees the U.S. as worthy of the highest credit rating. The downgrade was driven by factors such as an annual budget deficit nearing $2 trillion, a debt burden exceeding GDP, and elevated interest rates that have significantly increased the government’s borrowing costs—conditions which, if persistent, could serve as catalysts for gold’s resurgence.
Adrian Day, CEO of Adrian Day Asset Management, stated: “The downward trend continues. We expect prices to decline further in the coming weeks, especially with the potential restructuring of U.S. trade tariffs. That said, once this phase passes, it could set the stage for one of the best buying opportunities.”
Adam Button, Chief Currency Strategist at Forexlive.com, offered a similar outlook, saying: “Current trading sentiment is clearly tilted toward the downside. The market is searching for a new floor, although it seems likely that support will remain above the key $3,000 psychological threshold.”
Following a week full of economic data, the upcoming week’s calendar appears relatively light, with only a handful of reports likely to influence the markets. Early in the week, traders will face a lack of major catalysts, but focus will gradually shift toward Thursday’s releases: weekly jobless claims, the flash PMI from S&P Global, and existing home sales. Additionally, new home sales data on Friday will be one of the few key events of the week.
Alongside these economic updates, the coming days will feature a wave of speeches from Federal Reserve policymakers. Speakers include Jefferson, Williams, Logan, Kashkari, Barkin, Bostic, Collins, Musalem, Kugler, Daly, and Hsu, culminating with a speech from Fed Chair Jerome Powell on Sunday evening.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.