Wyoming meeting should push Gold lower!
Even though the Gold failed to breach the strong 1727-1730 support on two occasions throughout the last week (22nd and 23rd of August), the Gold is expected to test the strong support once again, as Fed Chair Powell announced hawkish stance for September's FOMC meeting (which is currently pumping the Dollar price even higher- adding selling pressure on Gold- evident throughout Friday's early US session) and as the Gold price failed to close Fridays daily chart candle above the 1750 psychological barrier, which currently represent strong bearish signs regarding Gold price for the following week. Gold should test the previously mentioned support, and after it gets broken, selling continuation is expected, with Price Action testing the 1717 and 1700 support levels.
Feds chairman Jerome Powell announced that the rate hikes will not stop until the main inflation index- CPI do not reach close to its 2% target and that rates will not go down so easily even when inflation gets tamed. All of this hugely affects the Dollar Price, which is getting more and more expensive.
As the main counter correlating asset for Gold price- DXY is gaining huge value, almost reaching the 108.950 14th July and 24th August resistance, strong selling pressure is applied od Gold. I do not see why DXY should not beach the 15th July and 23rd August resistances, considering all fundamental events happening right now.
Gold lost 1,16% of its value throughout last US session, and is currently trading within the 6th-12th July neutral rectangle. As Gold Price is most often repeating its trading patterns, I expect the Price Action to breach the 1727 support zone by the end of mid-week, same as it did on 12th and 14th of July, 2022.
Nonfarm Payrolls report that is set to be released on following Friday, should provide us with information how does the current rate hikes affect the labor market, and how well is the FED battling the inflation without damaging the labor market. Out of the last five NFP reports, only the last one had the impact on Gold Price. The higher (528K) than expected (250K) reading was bullish for Dollar yet bearish for Gold (gold lost app. 20 Points).
Considering all I have written above, I expect further meltdown on Gold Price, and I will consider opening the selling order once the 1727 support gets broken, as I see no bullish signs for Gold nor fundamentally nor technically.
Even though the Gold failed to breach the strong 1727-1730 support on two occasions throughout the last week (22nd and 23rd of August), the Gold is expected to test the strong support once again, as Fed Chair Powell announced hawkish stance for September's FOMC meeting (which is currently pumping the Dollar price even higher- adding selling pressure on Gold- evident throughout Friday's early US session) and as the Gold price failed to close Fridays daily chart candle above the 1750 psychological barrier, which currently represent strong bearish signs regarding Gold price for the following week. Gold should test the previously mentioned support, and after it gets broken, selling continuation is expected, with Price Action testing the 1717 and 1700 support levels.
Feds chairman Jerome Powell announced that the rate hikes will not stop until the main inflation index- CPI do not reach close to its 2% target and that rates will not go down so easily even when inflation gets tamed. All of this hugely affects the Dollar Price, which is getting more and more expensive.
As the main counter correlating asset for Gold price- DXY is gaining huge value, almost reaching the 108.950 14th July and 24th August resistance, strong selling pressure is applied od Gold. I do not see why DXY should not beach the 15th July and 23rd August resistances, considering all fundamental events happening right now.
Gold lost 1,16% of its value throughout last US session, and is currently trading within the 6th-12th July neutral rectangle. As Gold Price is most often repeating its trading patterns, I expect the Price Action to breach the 1727 support zone by the end of mid-week, same as it did on 12th and 14th of July, 2022.
Nonfarm Payrolls report that is set to be released on following Friday, should provide us with information how does the current rate hikes affect the labor market, and how well is the FED battling the inflation without damaging the labor market. Out of the last five NFP reports, only the last one had the impact on Gold Price. The higher (528K) than expected (250K) reading was bullish for Dollar yet bearish for Gold (gold lost app. 20 Points).
Considering all I have written above, I expect further meltdown on Gold Price, and I will consider opening the selling order once the 1727 support gets broken, as I see no bullish signs for Gold nor fundamentally nor technically.