Markets Analysis

Gold falls, dollar strengthens on renewed speculation of additional U.S. interest rate hikes【September 7, 2023】

September 07, 2023

Markets Analysis

Fundamental Analysis

  • U.S. stock indexes fall; U.S. ISM manufacturing business confidence index exceeds expectations
  • Possibility of Additional U.S. Rate Hike Reemerges; Dollar Continues to Appreciate in Currency Exchange Rates
  • Gold dead-crosses at moving averages, downtrend strengthens

XAUUSD Technical Analysis

Analyze the daily chart of the Gold market. Gold is currently challenging the upper limit of its descending channel but failing to break through; it is moving below its 24-day moving average and can be expected to target the $1900 level again.

The possibility of additional interest rate hikes is being considered as U.S. economic indicators have exceeded market expectations. Thus, the dollar continues to strengthen, which is limiting Gold’s upside. Specifically, $1892 and $1884 are the daily lows that are being considered.

[XAUUSD / D1]

Day Trading Strategy (Hourly)

Analyze the hourly chart of Gold. Currently, the 24 short-term moving average is moving below the 240 moving average, which suggests a strong sell signal, known as a dead cross. The 240 moving average is firmly in place and a selloff at this line can be confirmed. This move is a very probable sell signal.

Technically, a decline to $1906 is possible. In addition, settlement would be advisable when the RSI falls below 30 and then rises again to above 30.

As for the day trade policy, we consider a new sell. The entry is set at $1916, the stop at $1921, and the settlement target at $1906.

Support and Resistance Lines

The resistance line to be considered in the future is as follows

1910 USD – Fibonacci level
1900 USD – Round number

[XAUUSD / H1]

Market Sentiment

XAUUSD Sell: 21% Buy: 79%

Today’s Important Economic Indicators

Economic Indicators and EventsJST (Japan Standard Time)
EU GDP18:00
U.S. unemployment insurance claims21:30

*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.

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