GOLD (May 23) declines due to the Fed's tightening efforts
Updated
The price of gold has dropped below $1,970 as Fed policymakers express confidence in raising interest rates to fight long-term inflation in the US. Meanwhile, the S&P500 futures contracts have shown a strong recovery.
On Monday, President Biden and House Minority Leader Kevin McCarthy discussed debt ceilings without reaching an agreement. The President of St. Louis Fed, James Bullard, stated that the Fed wants to fight inflation in the context of a strong labor market and that policy interest rates may increase by 50 basis points this year.
Gold prices are predicted to decline sharply below the demand range of $1,950-$1,970 on the 4-hour chart. The EMA 89 line at $1,993 is currently acting as resistance for gold price speculation.
On Monday, President Biden and House Minority Leader Kevin McCarthy discussed debt ceilings without reaching an agreement. The President of St. Louis Fed, James Bullard, stated that the Fed wants to fight inflation in the context of a strong labor market and that policy interest rates may increase by 50 basis points this year.
Gold prices are predicted to decline sharply below the demand range of $1,950-$1,970 on the 4-hour chart. The EMA 89 line at $1,993 is currently acting as resistance for gold price speculation.
Note
Gold price is near the support zone. Buy Gold can be considered at entry $1,950-52, Stoploss $1,945. The most important thing is risk control. Good luck !!!
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