Markets uneasy about Fed policy, OPEC policy meeting draws atten
Unexpectedly strong U.S. economic data made the market uneasy about the outlook for U.S. inflation and interest rates, which in turn affected gold price trends. A business survey released by S&P Global supported the view among many traders that the Federal Reserve is likely to keep interest rates higher for longer. This expectation has heightened market concerns about the outlook for the U.S. economy, which is not good news for traders looking forward to a rate cut from the Federal Reserve.
The Purchasing Managers' Index (PMI) pointed to stronger growth and the possibility of a new round of inflation, further undermining market expectations for a rate cut. The hawkish tone in the minutes of the Federal Reserve's policy meeting also suggested that policymakers were not confident in cutting interest rates, which pushed up U.S. bond yields and the dollar, affecting metals markets. While the current policy response is likely to include keeping the Fed's benchmark policy rate at current levels, the minutes also reflected discussion of possible further rate hikes, adding to market concerns about rising interest rates.
However, reserve buying in Asia remains a significant driver, which may limit gold's losses for the time being. As a safe-haven asset, gold still has certain appeal amid increasing global economic uncertainty. Investors need to pay attention to the development of the global economic situation, especially changes in U.S. economic data and Federal Reserve policy, as well as the impact of geopolitical risks and other factors on gold prices.
As a safe-haven asset, gold has been affected by global economic and political turmoil, and has recently experienced fluctuations against the backdrop of a strong U.S. dollar and strong U.S. economic data. On May 24, spot gold hit a two-week low and is currently trading around $2,338, falling for three consecutive trading days. One of the main reasons behind this fluctuation is that the US Federal Reserve's hawkish delay in cutting interest rates has boosted the US dollar, which is expected to record its largest weekly gain in a month and a half, while the US dollar's strength usually puts pressure on gold prices. Next week, gold will focus on the support level formed after the 1-hour downward trend line breaks through.
Have a nice weekend, if you like my analysis, please continue to follow me, thank you
Trade active:
As the international situation worsens, gold rises at a high rate
Trade active:
Please continue to pay attention to my updates
Trade active:
hope we can make profit
Trade active:
Gold bullish unchanged
Trade active:
Happy weekend everyone
Trade active:
Everyone, please be prepared before trading.
Trade active:
What other thoughts do you have on gold?
Trade active:
The weakness during the week continues. After the short power is fully released, it can stabilize and rise again. Only then will the room for further rises be expanded. It is still necessary to understand that under the background of the overall macro fundamentals, it is the support for the gold price to rise again. , that is, the rising trend has not changed and will continue, and the falling trend is the time to intervene.
Trade active:
At the beginning of next week, let’s see whether the low of $2,325 can be maintained.
Trade active:
If you have seen my analysis, you can prepare yourself
Trade active:
I'm looking forward to tomorrow's deal
Trade active:
The time for opening trading is getting closer and closer
Trade active:
Gold is predicted to start an upward trend
Trade active:
My Weekend Prediction Was So Perfect, Gold Opened Higher
Trade active:
Gold continues to move higher and our forecast is perfect
Trade active:
The opening rose today and exceeded 2350. My prediction was perfect.
