XAUUSD: Are you looking for a beautiful entry point?
Fundamental technical analysis:
In straightforward terms, the closest level of support for GOLD is at 1932, and it is expected to hold up well in the near future. The Relative Strength Index (RSI) is still below average, indicating a need for more liquidity for GOLD to continue its decline. The moving averages, specifically the EMA 34 and EMA 89, have crossed over, indicating a downtrend, although it is not entirely clear yet.
Market overview:
XAU/USD maintains its slight gains for the day, trading at familiar levels around $1,950. The improved investor sentiment is a result of recent US inflation figures, which support a more cautious approach from the Federal Reserve. The Consumer Price Index (CPI) increased by only 0.1% MoM in May, slower than expected. Additionally, the Producer Price Index (PPI) contracted by 0.3% in the same month. These numbers suggest that price pressures are decreasing, validating the Fed's aggressive monetary policy implemented in March 2022.
Given this situation, it seems reasonable to expect an end to the tightening cycle, despite indications of a tight labor market that could potentially drive inflation back up. However, due to ongoing financial system pressures, US policymakers have decided to take a more cautious approach, making decisions on a meeting-by-meeting basis.
The price of GOLD is predicted to experience a small uptick before facing a subsequent decline. It's important to note that even a slight increase in value helps maintain liquidity.
In straightforward terms, the closest level of support for GOLD is at 1932, and it is expected to hold up well in the near future. The Relative Strength Index (RSI) is still below average, indicating a need for more liquidity for GOLD to continue its decline. The moving averages, specifically the EMA 34 and EMA 89, have crossed over, indicating a downtrend, although it is not entirely clear yet.
Market overview:
XAU/USD maintains its slight gains for the day, trading at familiar levels around $1,950. The improved investor sentiment is a result of recent US inflation figures, which support a more cautious approach from the Federal Reserve. The Consumer Price Index (CPI) increased by only 0.1% MoM in May, slower than expected. Additionally, the Producer Price Index (PPI) contracted by 0.3% in the same month. These numbers suggest that price pressures are decreasing, validating the Fed's aggressive monetary policy implemented in March 2022.
Given this situation, it seems reasonable to expect an end to the tightening cycle, despite indications of a tight labor market that could potentially drive inflation back up. However, due to ongoing financial system pressures, US policymakers have decided to take a more cautious approach, making decisions on a meeting-by-meeting basis.
The price of GOLD is predicted to experience a small uptick before facing a subsequent decline. It's important to note that even a slight increase in value helps maintain liquidity.
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Fed Powell: As we see what happens with credit terms, individual banks are going to take macroeconomic ramifications into account in setting up the rate.
Comment:
🟢 The end of the press conference of the Federal Open Market Committee - FOMC headed by US Federal Reserve Chairman Jerome Powell
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Powell:
-High inflation imposes a lot of difficulties on us.
-We are very alert to the risks that high inflation poses to all parties...
-At this meeting, we have seen it prudent to keep interest rates steady...
-We will continue to make decisions meeting meeting...
-High inflation imposes a lot of difficulties on us.
-We are very alert to the risks that high inflation poses to all parties...
-At this meeting, we have seen it prudent to keep interest rates steady...
-We will continue to make decisions meeting meeting...
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Fed's rate trajectory, ECB decision, China rate cut - what's moving markets
The Federal Reserve has paused rate hikes for now, but not for long, while China's central bank is heading in the opposite direction, cutting interest rates. The European Central Bank is up next, and is expected to continue tightening its monetary policy.
The Federal Reserve has paused rate hikes for now, but not for long, while China's central bank is heading in the opposite direction, cutting interest rates. The European Central Bank is up next, and is expected to continue tightening its monetary policy.
