Hawkish major central banks continue to weigh on Gold price

The uncertainty over the Federal Reserve's (Fed) rate-hike path is holding back traders from placing aggressive directional bets around the Gold price. It is worth recalling that the Fed signalled last week that borrowing costs may still need to rise by as much as 50 basis points (bps) by the end of this year. That said, the incoming softer macro data from the United States (US) raised questions over how much headroom the Fed has to keep raising rates. Hence, the focus will remain glued to Fed Chair Jerome Powell's two-day congressional testimony, which will be scrutinized for fresh clues about the US central bank's policy outlook and help determine the near-term trajectory for the GOLD

In the meantime, the markets have been pricing in the possibility of another 25 bps lift-off in July as inflation in the US is still trending well above the central bank’s 2% annual target. This, along with a more hawkish outlook by other major central banks, caps the upside for the non-yielding Gold price. In fact, the Reserve Bank of Australia (RBA) and the Bank of Canada (BoC) delivered a surprise 25 bps rate hike earlier this month. Moreover, the European Central Bank (ECB) last week lifted rates to the highest level in 22 years and projected further tightening to bring down inflation. The Bank of England (BoE) and the Swiss National Bank (SNB) are also expected to hike interest rates by 25 bps later this week.

GOLD BUY 1940-1935 💯💯

✅ TP1: 1945
✅ TP2: 1950
✅ TP3: 1955

🛑 SL: 1930