Amid concerns of a potential US government default in early June if debt ceiling negotiations fail, investors are avoiding short-term US Treasuries. Gold demand has increased despite some Fed officials remaining hawkish. The Fed is expected to make two more rate hikes in 2023 to curb inflation. While Wall Street predicts a high risk of a US recession, it has been overstated. In the medium to long term, the USD is under pressure as the Fed will inevitably reverse monetary policy after 10 interest rate hikes totaling 475 percentage points. The reversal will cause a rapid depreciation of the dollar and positively impact gold.
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TheCryptagon
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Very professional piece of work!
InvestingScope
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Quality analysis and explanation of this scenario. Even if the opposite happens, the idea is well explained and that's all it matters in terms of technical analysis.
SupperTrading-FX
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@InvestingScope, Thank you for your feedback, looking forward to receiving more suggestions to improve