XAUUSD - Reversal to a decrease in strength selling strategy
Gold price fell today due to the increasing pressure of USD. Earlier this morning, the US Dollar Index, which measures the volatility of the greenback, rose above 103 points, taking away gold's attractiveness to buyers holding other currencies. Gold bulls are also timid when the technical factors of gold are falling.
In the past week, the world gold metal witnessed a second consecutive week of declines as the market received a series of data that showed that inflation remained a problem, while the health of the economy and the market was not the same. The school has not improved yet. Labor is still good. The upbeat economic data also raised expectations that the world's top economy will achieve a soft landing scenario when it emerges from the recession.
In that context, the market continues to assess the possibility that the US Federal Reserve (Fed) will continue the roadmap of drastic monetary policy tightening to achieve the inflation target.
In a recent report, a group of economists at Goldman Sachs forecast that the Fed will cut interest rates in the second quarter of 2024 regardless of whether a recession occurs or not. However, these banking experts warn that during this time, interest rates can be kept stable if inflation does not cool down fast enough.
In the past week, the world gold metal witnessed a second consecutive week of declines as the market received a series of data that showed that inflation remained a problem, while the health of the economy and the market was not the same. The school has not improved yet. Labor is still good. The upbeat economic data also raised expectations that the world's top economy will achieve a soft landing scenario when it emerges from the recession.
In that context, the market continues to assess the possibility that the US Federal Reserve (Fed) will continue the roadmap of drastic monetary policy tightening to achieve the inflation target.
In a recent report, a group of economists at Goldman Sachs forecast that the Fed will cut interest rates in the second quarter of 2024 regardless of whether a recession occurs or not. However, these banking experts warn that during this time, interest rates can be kept stable if inflation does not cool down fast enough.
Comment:
HIT TP2+ 100Pips ✅✅
✅ TP1: 1906
✅ TP2: 1900
🛑 SL: 1918