XAUUSD - Can gold drop to as low as $1,900, even $1,880?
December gold futures hit a five-month low at the start of the week as pressured by a stronger dollar. Early this morning, the US Dollar Index, which measures the volatility of the greenback, rose above 103 points, taking the attraction of gold to buyers holding other currencies. Gold bulls are also jarring as gold's technicals are falling.
In the last week, the world yellow metal saw a second week of severe errors in a row as the market received a flurry of data showing that usage remains an issue, while the health of the The economy and labor market are still good. The upbeat economic figures also raise expectations that the world's leading economy will achieve a soft landing scenario when it comes out of the economic recession.
In that context, the market continues to determine the possibility that the US Federal Reserve (Fed) will continue its aggressive monetary policy tightening route to achieve its intended use.
In a recent report, Goldman Sachs' economic team forecasts that the Fed will cut rates in the second quarter of 2024 regardless of whether the Crash occurs or not. However, banking experts warn, in the meantime, rates could hold steady if usage doesn't cool down fast enough.
In the last week, the world yellow metal saw a second week of severe errors in a row as the market received a flurry of data showing that usage remains an issue, while the health of the The economy and labor market are still good. The upbeat economic figures also raise expectations that the world's leading economy will achieve a soft landing scenario when it comes out of the economic recession.
In that context, the market continues to determine the possibility that the US Federal Reserve (Fed) will continue its aggressive monetary policy tightening route to achieve its intended use.
In a recent report, Goldman Sachs' economic team forecasts that the Fed will cut rates in the second quarter of 2024 regardless of whether the Crash occurs or not. However, banking experts warn, in the meantime, rates could hold steady if usage doesn't cool down fast enough.
Comment:
Running +20Pips ✅✅
Comment:
Reflecting investor sentiment, the SPDR Gold Trust, in charge of the world's largest gold-backed exchange, said its holdings have fallen to their lowest level since January 2020.
Comment:
Experts say that gold will still find it difficult to find an upward momentum in the short term. However, the precious metal's decline will be capped by demand from the world's major central banks. A recent report by the World Gold Council shows that central banks have not finished the race to add gold to their reserves.
Comment:
HIT TP1 + 60Pips ✅✅
✅ TP1: 1909
✅ TP2: 1914
🛑 SL: 1898