Gold prices fell significantly this morning, with spot gold down $13.4 to $1,943 and August gold futures trading at $1,956, down $14 from the previous day.
The drop came on the back of a re-evaluation of interest rate expectations following last week's Fed decision. Additionally, the US Consumer Price Index rose 0.1% last month and Core CPI increased 0.4% in May, marking the third consecutive month of similar gains.
Despite the initial losses, the greenback steadied again as investors worried that the core CPI remained too high above the Fed's 2% inflation target. The outcome of the meeting could send interest rates up another 25 basis points.
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The US dollar (USD) struggled to capitalize on modest overnight gains from its lowest since May 17 and remained on the defensive throughout Wednesday's Asian session. The USD Index (DXY), which tracks the Greenback against a basket of currencies, hovers around the 102.80 region, down more than 0.10% on the day, as traders eagerly await the outcome of the rally. FOMC's much-anticipated monetary policy meeting.
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⭐️Make a trading plan: ✅Buy order in the $1,955-$1,953 price zone when the support zone is approached. ✖️Stoploss: $1,960.
AND ALWAYS REMEMBER WHAT YOU NEED TO DO IS MANAGE RISK. GOOD LUCK !!!