World gold had a recovery day increasing around 2310 yesterday after a sharp decline last weekend. Gold remains tilted to the downside as expectations for a Fed rate cut decline – Markets await CPI data and the Fed's interest rate decision on Wednesday night. Forecast data along with the decision will provide a picture greater clarity on inflation rates and potential changes in the monetary policy trajectory.
Gold is still tilted downward when US Nonfarm payroll data released last Friday was better than expected. This leads to the FED being able to keep interest rates high for a longer period of time. This, in turn, has had an immediate bearish impact on Gold by increasing the opportunity cost of holding the non-yielding precious metal, making it less attractive to investors.
Market participants remain largely focused on the Consumer Price Index (CPI) for May and the Federal Reserve (Fed) meeting, both taking place on Wednesday. Since Monday and Tuesday's trading session did not have any major highlights, investors are keeping their eyes glued to upcoming events. The forecast data along with the decision will provide a clearer picture of the inflation rate and potential changes in the monetary policy trajectory.
The Fed is not expected to make any changes this week, focusing on comments from Fed Chairman Jerome Powell and changes to policymakers' economic forecasts. That means the first rate cut could come at one of the last three FOMC meetings of the year – September, November or December – or until 2025. Adding to the uncertainty, The US is preparing to release consumer price inflation data in May ahead of the Fed's decision. Economists surveyed expect inflation to cool. This could affect the Fed's interest rate outlook to some extent.
In summary: Gold had a recovery day after the previous sharp decline. However, gold is still inclined to decline as expectations of FED interest rate cuts decline. There was no important economic data released from the US today, the market turned to CPI data and the FED's interest rate decision on Wednesday night.
About the technical angle.
Gold recovered after a sharp decline at the end of last week. Currently, gold is moving stably above the psychological support zone of 2300, but the resistance level around 2315 needs to be overcome to extend the recovery momentum.
Support: 2300 - 2286 - 2280 - 2274 - 2268 - 2259
Resistance: 2315 - 2320 - 2325 - 2338
🟢BUY price range 2277 - 2279 stoploss 2274
🟢BUY price range 2270 - 2268 stoploss 2265
🔴SELL price range 2320 - 2322 stoploss 2325
🔴SELL price range 2338 - 2340 stoploss 2343
Gold is still tilted downward when US Nonfarm payroll data released last Friday was better than expected. This leads to the FED being able to keep interest rates high for a longer period of time. This, in turn, has had an immediate bearish impact on Gold by increasing the opportunity cost of holding the non-yielding precious metal, making it less attractive to investors.
Market participants remain largely focused on the Consumer Price Index (CPI) for May and the Federal Reserve (Fed) meeting, both taking place on Wednesday. Since Monday and Tuesday's trading session did not have any major highlights, investors are keeping their eyes glued to upcoming events. The forecast data along with the decision will provide a clearer picture of the inflation rate and potential changes in the monetary policy trajectory.
The Fed is not expected to make any changes this week, focusing on comments from Fed Chairman Jerome Powell and changes to policymakers' economic forecasts. That means the first rate cut could come at one of the last three FOMC meetings of the year – September, November or December – or until 2025. Adding to the uncertainty, The US is preparing to release consumer price inflation data in May ahead of the Fed's decision. Economists surveyed expect inflation to cool. This could affect the Fed's interest rate outlook to some extent.
In summary: Gold had a recovery day after the previous sharp decline. However, gold is still inclined to decline as expectations of FED interest rate cuts decline. There was no important economic data released from the US today, the market turned to CPI data and the FED's interest rate decision on Wednesday night.
About the technical angle.
Gold recovered after a sharp decline at the end of last week. Currently, gold is moving stably above the psychological support zone of 2300, but the resistance level around 2315 needs to be overcome to extend the recovery momentum.
Support: 2300 - 2286 - 2280 - 2274 - 2268 - 2259
Resistance: 2315 - 2320 - 2325 - 2338
🟢BUY price range 2277 - 2279 stoploss 2274
🟢BUY price range 2270 - 2268 stoploss 2265
🔴SELL price range 2320 - 2322 stoploss 2325
🔴SELL price range 2338 - 2340 stoploss 2343
Note
🔴SELL price range 2320 - 2322 +140pips
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.