On an hourly scale, the XAU / USD created a pattern of the double-bottomed chart, suggesting a bullish turnaround amid the loss of high-volume retailers when retesting the critical bottom. Gold prices rose fully after a successful test on Wednesday below $ 1,939.31. The relative strength index (RSI) (14) prevented a fall in the bearish range of 20.00-40.00. The precious metal is also built above the 20-fold exponential moving average (EMA), signaling further gains in the future.
Fundamental Analysis
Gold came under renewed selling pressure on Friday and fell after almost two weeks, hitting the region of $ 1,930 in the first half of the European session. Fed Chairman Jerome Powell's speech at the International Monetary Fund event seemed extremely hawkish and confirmed everything except the rate increase by 50 basis points at the upcoming political meeting on 3-4. May. Powell also pointed to a series of walks this year, and markets quickly quantified three major rate increases this year. This was evidenced by widespread sales in the US fixed income market, which pushed US government bond yields closer to multi-year highs and burdened the unproductive yellow metal.
In fact, the Treasury's benchmark 10-year yield has returned to a key 3% level in hawkish rhetoric, and the real interest rate has turned positive for the first time in two years. Gold prices also remained lower with rising yields in the eurozone after Joachim Nagel, president of the German Bundesbank, told the political corps that the ECB could raise interest rates in the early third quarter. Currency markets now appreciate an increase of 25 basis points (bps) in July and more than 70 bps tightening at the end of the year. This would increase comparative interest above zero for the first time since 2013.
Meanwhile, the prospect of a more aggressive policy of raising the Fed could benefit the US dollar from a nightly turnover to a weekly low. The USD index rose to its highest level since March 2020 on the last day of the week, which is considered another factor that damaged gold in dollars. Moreover, fears that the escalating crisis in Ukraine will put upward pressure on already high inflation, along with encouraging risk, could benefit from the safe metal profession as a hedge against rising inflation. The publication of the S&P Global Composite Purchase Managers Index (PMI) at a meeting in New York will be important in the future. A preliminary figure of 58.1 shows better performance than the previous print of 57.7.
Fundamental Analysis
Gold came under renewed selling pressure on Friday and fell after almost two weeks, hitting the region of $ 1,930 in the first half of the European session. Fed Chairman Jerome Powell's speech at the International Monetary Fund event seemed extremely hawkish and confirmed everything except the rate increase by 50 basis points at the upcoming political meeting on 3-4. May. Powell also pointed to a series of walks this year, and markets quickly quantified three major rate increases this year. This was evidenced by widespread sales in the US fixed income market, which pushed US government bond yields closer to multi-year highs and burdened the unproductive yellow metal.
In fact, the Treasury's benchmark 10-year yield has returned to a key 3% level in hawkish rhetoric, and the real interest rate has turned positive for the first time in two years. Gold prices also remained lower with rising yields in the eurozone after Joachim Nagel, president of the German Bundesbank, told the political corps that the ECB could raise interest rates in the early third quarter. Currency markets now appreciate an increase of 25 basis points (bps) in July and more than 70 bps tightening at the end of the year. This would increase comparative interest above zero for the first time since 2013.
Meanwhile, the prospect of a more aggressive policy of raising the Fed could benefit the US dollar from a nightly turnover to a weekly low. The USD index rose to its highest level since March 2020 on the last day of the week, which is considered another factor that damaged gold in dollars. Moreover, fears that the escalating crisis in Ukraine will put upward pressure on already high inflation, along with encouraging risk, could benefit from the safe metal profession as a hedge against rising inflation. The publication of the S&P Global Composite Purchase Managers Index (PMI) at a meeting in New York will be important in the future. A preliminary figure of 58.1 shows better performance than the previous print of 57.7.