Gold short-term rise does not reduce the pressure of the FED

Gold in the past week!

The news of the Wall Street Journal and the possible intervention of the yen at the end of the week caused great fluctuations in the market and caused the gold market to turn green. The market is looking for clues about these fluctuations to make sure, it has the power to join these fluctuations or the news.
The Wall Street Journal reported that some members of the Federal Reserve are considering slowing the pace of rate hikes after November as volatility and uncertainty grip financial markets. Therefore, many traders thought that it was the end of the Federal Reserve.

This week’s calendar is full of important news. First, we have the meeting of the central bank of Canada ahead of which the markets expect an increase in interest rates, but there is a difference of opinion about the amount of this increase. Meanwhile, in Europe, a 0.75% increase by the European Central Bank is almost certain and now the emphasis is on the press conference. Finally, we come to the Bank of Japan, where all experts believe that there is currently no plan to increase interest rates.

Considering the upward momentum of gold and the intervention of the Central Bank of Japan in the promissory note market, it is possible that we will continue to see growth in gold, but we do not suggest that you follow the gold market in order to buy. We are not yet at the end of the contractionary policy cycle and this could keep pressure on gold.

The short-term rise of gold does not reduce the pressure of the Federal Reserve in the market.

Although gold is at attractive prices, making it an attractive long-term buy, it will remain bearish in the short term as banks pursue monetary tightening policies and the Federal Reserve is not yet ready to turn around its policies, which supports the US dollar and will put pressure on gold.

Big traders think of buying gold only when there is no more pressure from the Federal Reserve and the growth of the dollar, and the first signs of this should be followed by successive reductions in inflation.

$1670 and $1680 is string resistance and $1620 is your support area
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