GOLD: Continuation of downtrend!

When the dust settles, the Fed is set to continue raising rates

If the Federal Reserve meeting were held today, the current uncertainty surrounding banks would prompt them to keep rates unchanged. However, in the ever-changing world of markets, a lot can happen in just one week. If the upcoming weekend remains calm and without any need to rescue banks, there is a strong possibility of a 25 basis points rate hike. The Federal Reserve typically continues to increase rates until they reach a breaking point. Even if the only bank to suffer is SVB, high inflation levels may still require further rate hikes. This scenario would result in a stronger US Dollar, but eventually lead to a decline in the stock market once the initial relief rally following no new bank failures fades away.

Trade active:

Testifying before the House Financial Services Committee in March, Powell said a central bank digital currency is “something we would certainly need congressional approval for.”

Trade closed: stop reached