I had projected a $100 crash in advance on 07 June 2024 at 10.0 AM in advance, before NFP Data was published. We observed a crash in Gold price from $2385/2388 zone to $2288 zone on NFP Day.
A strong US NFP headline print and the wage inflation data drove the US Treasury bond yields sharply higher across the curve, with the 2-year Treasury yields, which is sensitive to Fed policy expectations, shooting up by the most in two months. The US Dollar followed the upsurge in the US Treasury bond yields on a significant decline in the bets for a US Federal Reserve (Fed) interest rate cut in September, weighing heavily on the non-interest-bearing 🔻 Gold price.
Markets dialed down bets of a 25 basis points (bps) rate cut in September to about 43% from about 55% before the report, according to the CME Group’s FedWatch Tool, and now see roughly an even chance of two rate cuts by the end of 2024, versus about a 68% chance seen before the NFP release, per Reuters.
Furthermore, reports that the People’s Bank of China (PBoC) paused gold purchases to its reserves in May, ending a massive buying spree that ran for 18 months, further seem to undermine the Gold price. That said, a cautious market mood lends some support to the safe-haven XAU/USD and helps limit deeper losses. Traders also seem reluctant to place aggressive directional bets ahead of this week’s key US data and central bank event risk – the release of the latest US consumer inflation figures and the outcome of the two-day FOMC policy meeting on Wednesday. This, in turn, warrants caution before positioning for further losses.
The US Dollar 🔺 upside gains renewed traction early Monday, as markets ramp up their bets on delayed Fed rate cuts heading into the US Consumer Price Index (CPI) data and the Fed policy announcements due on Wednesday.⚠️
XAUUSD/Spot GOLD: Crucial Price zones today: how to trade XAUUSD today?
XAUUSD under PPZ today
🔻 S2 $2244 zone
🔺 R2 $2342 zone
AVOID Big Lots.
Wednesday 12.06.2024 will mark another $100 movement in the following days.
I had alerted $100 price action is expected last week, verify here: https://t.me/c/1654158888/9313: where in $2387-$2287 price crash was observed in a single day before and after NFP data was published.
As usual, justifying a price crash after the crash or rise is too convenient for media houses, however what needs to be noticed here is that we alert and project price movements in advance, where in traders get enough time to encash it / save their account from higher drawdowns.
🟢 Hence trade wisely, at price zones projected by us and avoid taking high risks in between the price zones mentioned by me, to keep low drawdowns and higher ROI like this:
Read analysis posted on 03.06.2024, where in I had projected a crash from $2369/2385 zone till $2288 zone, and had suggested SELLING at $2369/2385 and buying at $2288 CMP $2396 (NAP achieved).
Verify at: https://t.me/c/1654158888/9313 and https://t.me/c/1654158888/9316
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