XAU surged after the news
Updated
XAU maintained its upward momentum and recorded its highest price ever
Today, gold had a strong increase in price to above $2,220 thanks to the weakening of the USD/USD.
If PCE inflation continues to rise, the Fed may have to adjust its interest rate reduction schedule in 2024. This will lead to a sharp increase in US government bond yields and the USD. Conversely, if PCE data is lower than expected, market expectations of the Fed cutting interest rates will be reinforced, helping the greenback appreciate. Currently, the DXY index has corrected downward after hitting a new six-week high at 104.72.
The nearest price resistance is located at the 161.8% Fibonacci extension and the psychological threshold of $2,250 dollars. Conversely, if gold corrects downward in the near future, the $2,144.48 area will act as the first support level. In addition, on the daily chart the RSI indicator has started to increase again from 64.00.
Today, gold had a strong increase in price to above $2,220 thanks to the weakening of the USD/USD.
If PCE inflation continues to rise, the Fed may have to adjust its interest rate reduction schedule in 2024. This will lead to a sharp increase in US government bond yields and the USD. Conversely, if PCE data is lower than expected, market expectations of the Fed cutting interest rates will be reinforced, helping the greenback appreciate. Currently, the DXY index has corrected downward after hitting a new six-week high at 104.72.
The nearest price resistance is located at the 161.8% Fibonacci extension and the psychological threshold of $2,250 dollars. Conversely, if gold corrects downward in the near future, the $2,144.48 area will act as the first support level. In addition, on the daily chart the RSI indicator has started to increase again from 64.00.
Note
💵XAUUSD SELL 2213- 2216💵✔️TP 2208
✔️TP 2200
❌SL 2222
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