Hello traders, a few things you should read before trading!
Technical analysis:
The price line is currently experiencing a downward trend in the short term, as indicated by the EMAs reversing. The RSI is slowly moving below the average. There is a strong support level at 1940. It is expected that gold will gradually decline to 1940 and then rise again in the near future.
Market overview:
Federal Reserve Chairman Jerome Powell is scheduled to appear before Congress on Wednesday, which may offer insights into the future direction of US monetary policy following the recent pause in rate increases by the central bank. Meanwhile, the price of gold is facing downward pressure due to the Fed's decision to raise interest rates, signaling the possibility of further rate hikes as a measure to control inflation.
Technical analysis:
The price line is currently experiencing a downward trend in the short term, as indicated by the EMAs reversing. The RSI is slowly moving below the average. There is a strong support level at 1940. It is expected that gold will gradually decline to 1940 and then rise again in the near future.
Market overview:
Federal Reserve Chairman Jerome Powell is scheduled to appear before Congress on Wednesday, which may offer insights into the future direction of US monetary policy following the recent pause in rate increases by the central bank. Meanwhile, the price of gold is facing downward pressure due to the Fed's decision to raise interest rates, signaling the possibility of further rate hikes as a measure to control inflation.
Trade active:
JPMorgan warns of pressures facing US stocks in the second half of the year.
Trade active:
SELL XAUUSD zone 1955 - 1957
Stoploss: 1959
Take profit: 1940
Stoploss: 1959
Take profit: 1940
Trade active:
In addition, some indicators of inflation indicate that it has decreased during the recent period, as commodity prices have stabilized after a significant increase during the pandemic period, and rents and low house prices will soon return to official levels.
Comment:
- Based on the latest signals from the Federal Reserve last week, markets may believe that the battle against inflationary pressure in the United States is coming to an end, but this belief is wildly incorrect, as undoing the hawkish path before the appropriate time remains. It is the greatest danger currently facing the largest central bank in the world.
On Tuesday morning, the Reserve Bank of Australia published the minutes of the June Monetary Policy Committee meeting, indicating that the bank had considered raising the interest rate by 25 basis points or keeping it, but reconsidered and postponed this option for consideration at a later meeting, moreover, The following points were the highlights of the minutes of the Australian Reserve meeting:
- The arguments for the two options were balanced, but the Fed decided that the case for a hike was stronger.
- An increase would provide greater confidence that inflation will return to target within a reasonable time frame.
- The balance of inflation risks has shifted to the upside since the May meeting.
- Long-term inflation expectations remain above the RBA's target, and those expectations may rise further given the risks.