Is the US going to default on its debt? What will gold do
Trust the direction of a wave of market judgment is not based on the market itself, but trust your own judgment, trust your own experience.
On Wednesday, President Joe Biden met with congressional leaders for more than an hour to discuss the debt ceiling, refusing to open the taps in the face of market shocks of default. It is still controversial.
Now, Biden and McCarthy are at loggerheads over the debt ceiling, and negotiations have been postponed until Friday, May 12, with McCarthy opposing a stopgap measure to extend the debt ceiling through Sept. 30. The recent collapse of Bank of America is an example of credit failure. Now the debt ceiling cannot be extended, or there is no ceiling at all, which would cause panic in the markets.
Meanwhile, the US cpi came in at a 10-year low of 4.9 per cent in April, below expectations of 5 per cent. The cpi is also an important indicator of future interest rate hikes by the Federal Reserve. Now, the likelihood of future rate hikes has lowered some expectations. But that's not the only prerequisite, and the methodology of whether or not there will be a big hike is dynamic, not set in stone, regardless of what Powell has said before.
Gold, which hit $2048 / oz intraday on Wednesday, then experienced a deep pullback, fluctuating between $2048 / oz and $2,022 / oz. Average daily demand for gold pullbacks is high. cpi data is key to rate hike expectations and a big driver of gold volatility. Us initial jobless claims for the week ending May 6 are due today at 242,000. This time the market is expecting 245,000, which is not much. If they appear above or below, then gold could continue to fall. Data is kept in a range until it is released.
Gold strategy: Gold first hits 2024-2020, buy in 2014, target 2035-2040, and sell first hits 2038-2040, target 2025-2020.
On Wednesday, President Joe Biden met with congressional leaders for more than an hour to discuss the debt ceiling, refusing to open the taps in the face of market shocks of default. It is still controversial.
Now, Biden and McCarthy are at loggerheads over the debt ceiling, and negotiations have been postponed until Friday, May 12, with McCarthy opposing a stopgap measure to extend the debt ceiling through Sept. 30. The recent collapse of Bank of America is an example of credit failure. Now the debt ceiling cannot be extended, or there is no ceiling at all, which would cause panic in the markets.
Meanwhile, the US cpi came in at a 10-year low of 4.9 per cent in April, below expectations of 5 per cent. The cpi is also an important indicator of future interest rate hikes by the Federal Reserve. Now, the likelihood of future rate hikes has lowered some expectations. But that's not the only prerequisite, and the methodology of whether or not there will be a big hike is dynamic, not set in stone, regardless of what Powell has said before.
Gold, which hit $2048 / oz intraday on Wednesday, then experienced a deep pullback, fluctuating between $2048 / oz and $2,022 / oz. Average daily demand for gold pullbacks is high. cpi data is key to rate hike expectations and a big driver of gold volatility. Us initial jobless claims for the week ending May 6 are due today at 242,000. This time the market is expecting 245,000, which is not much. If they appear above or below, then gold could continue to fall. Data is kept in a range until it is released.
Gold strategy: Gold first hits 2024-2020, buy in 2014, target 2035-2040, and sell first hits 2038-2040, target 2025-2020.
Trade active:
The signals we gave today were exactly right, today we sold gold in 2036 and then closed the trade in 2022 and finally bought gold in 2022 so far we have reached 2035 and made a profit again.
Trade active:
If you missed out on buying gold in 2024, don't miss out on selling gold in 2040. My signal has been very clear, take advantage of the opportunity!