GOLD spikes after Trump's move, with technical conditions

26. Aug.

XAUUSD surges after Trump's move, US President Donald Trump decided to fire Federal Reserve Governor Lisa Cook over allegations that she falsified mortgage records. The news affected the US Dollar index to fall sharply in early Asian trading on Tuesday (August 26), while spot gold prices rose nearly 35 dollars.

On Monday evening local time, US President Trump posted a letter to Federal Reserve Governor Cook on the social media platform Truth Social, stating that he would remove Federal Reserve Governor Cook from his position, effective immediately.
Trump stated in the document: "By virtue of the authority vested in me under Article II of the United States Constitution and the Federal Reserve Act of 1913, as amended, I hereby order to immediately remove Mr. Cook from his position on the Board of Governors of the Federal Reserve System.
Given Mr. Cook’s fraudulent financial conduct and potential criminal conduct, I have no confidence in his integrity.
At the very least, these actions expose his serious negligence in financial dealings and call into question his competence and credibility as a financial regulator.”
“The American people must have full confidence in the integrity of those who set policy and oversee the Federal Reserve,” Trump said. “Given his fraudulent and even criminal conduct in financial matters, they cannot have that confidence, and I have no confidence in his integrity.”

The move comes after the U.S. Justice Department said it plans to investigate Cook after Federal Housing Finance Agency Director Bill Pulte filed criminal charges alleging possible mortgage fraud.

Bloomberg News reported that the investigation is the latest in a series of moves by the Trump administration to increase regulatory scrutiny of Democratic figures and put pressure on the Federal Reserve.

DXY Falls Sharply, Gold Price Spikes Nearly $35 in Short Term
The US Dollar Weakens Against All Major Currencies After Trump Fires Federal Reserve Governor Cook. Bloomberg said Trump's move has undermined people's confidence in the US Dollar, the world's reserve currency.

Cook’s departure is bad for the Dollar as it opens the door for President Trump to appoint a new governor who may be more inclined to cut interest rates. This further challenges the independence of the Federal Open Market Committee (FOMC), the cornerstone of the Dollar’s ​​safe-haven status, and this could lead to further sell-offs in the Dollar, and of course, gold, which is directly correlated to the Dollar, will receive support from this.

Technical Outlook Analysis XAUUSD
Gold briefly surged above the 0.236% Fibonacci retracement level after the news but has now pared its intraday gains back below the said Fibonacci retracement level.

However, it is also achieving the initial technical conditions for a bullish outlook in the short term with price action above the EMA21 and the Relative Strength Index (RSI) moving above 50, an RSI above 50 with some significant slope would be a reliable signal for momentum support.

In terms of the overall technical picture, gold has not yet established a specific long-term trend with a sideways accumulation state that has lasted for the past few months, depicted by the green rectangle.

Therefore, short-term trades are preferred in the current technical context, and the key points for this trading day are listed below.
Support: 3,350 – 3,310 – 3,300 USD
Resistance: 3,371 – 3,400 – 3,430 USD

SELL XAUUSD PRICE 3407 - 3405⚡️
↠↠ Stop Loss 3411

→Take Profit 1 3399
↨
→Take Profit 2 3393

BUY XAUUSD PRICE 3350 - 3352⚡️
↠↠ Stop Loss 3346

→Take Profit 1 3358
↨
→Take Profit 2 3364

27. Aug.

Anmerkung

Trump's surprise decision to fire Fed Governor Cook raised concerns about the Fed's independence, fueling demand for havens and pushing gold prices to a two-week high above $3,393 an ounce.

27. Aug.

Anmerkung

28. Aug.

Anmerkung

Gold prices remained below $3,400 an ounce as investors remained cautious ahead of PCE data – a key inflation measure that will determine expectations for a September Fed rate cut.

vor 7 Tagen

Anmerkung

▫️Spot gold lost the $3,440/ounce mark, down 0.23% on the day.

vor 3 Tagen

Anmerkung

Gold hit a record high of $3,578 an ounce on Wednesday before retreating to $3,550 on profit-taking and concerns ahead of the U.S. jobs report. Recent weak jobs data reinforced expectations of an early Fed rate cut, supporting safe-haven demand for gold.