Gold price increased mainly due to bottom-fishing demand again
The rise of gold price in the world was restrained by the strengthening USD. Recently, the USD has strengthened quite clearly against major currencies. The DXY index (which measures the dollar's volatility against six major currencies in the world) has increased to 103.5 points, from a low of 997 points in mid-July.
The world USD appreciated strongly in the middle of the last week when China continued to loosen monetary policy, causing the yuan to weaken further. Compared to the beginning of the year, the yuan has decreased by 5.6%.
Although central banks in many countries have boosted their gold purchases, precious metals are not expected to break through when the USD is still rising. The Fed is expected to raise interest rates one more time in September and keep rates high for a relatively long time.
The world USD appreciated strongly in the middle of the last week when China continued to loosen monetary policy, causing the yuan to weaken further. Compared to the beginning of the year, the yuan has decreased by 5.6%.
Although central banks in many countries have boosted their gold purchases, precious metals are not expected to break through when the USD is still rising. The Fed is expected to raise interest rates one more time in September and keep rates high for a relatively long time.
Comment:
🔹Wagner fighters started moving from Belarus towards Russia.
Comment:
The BRICS will move forward using the trading currency below the dollar.
Comment:
🕯 BUY GOLD | 1905 - 1908
🔴 SL: 1900
🟢 TP1: 1913
🟢 TP2: 1918
🔴 SL: 1900
🟢 TP1: 1913
🟢 TP2: 1918
Trade active:
Running + 55pips ✔️✔️✔️
Trade active:
HIT TP1 + 80pips. Heading to TP2 ✔️✔️✔️
Comment:
Revised Q2 GDP will also be released, along with the PCE and ISM manufacturing, which should help investors confirm what the Fed-driven interest rate trajectory will look like, as the agency tries to balance by inflation and growth risks.
