Gold price (XAU/USD) saw buying interest around $1,947.50 in the London session, climbing above the crucial resistance of $1,950.00. Investors anticipate only one more interest rate hike from the Fed this year. S&P500 futures extended their downside journey as investors became cautious ahead of the extended weekend in the US due to Juneteenth. HSBC economists advise caution due to rising valuations and potential Fed tightening. However, we believe the Fed is nearing the end of its tightening cycle, benefiting US equities. The US Dollar Index (DXY) remains sideways despite Fed Chair Powell's affirmation of no rate cuts this year. Gold is approaching the upper part of the Falling Wedge pattern, with resistance at $1,958.84 and $2,000.00. RSI (14) indicates non-directional performance.
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Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carries a high level of risk. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and on such sites. Furthermore, one understands that the company carries zero influence over transactions, markets, and trading signals, therefore, cannot be held liable nor guarantee any profits or losses.