Gold Prices Rise Amid Fed's Rate Hike Anticipation
Updated
Gold prices have been on the rise this month, following the release of the July CPI report, which indicated that price pressures eased more rapidly than expected. The anticipated interest-rate hike by the Federal Reserve, expected to occur on Wednesday, has drawn close attention from investors, who are eager to gauge its implications for the central bank's future plans. The prevailing belief that this July hike may be the last for the current cycle has contributed to the upward momentum in gold prices, while simultaneously weakening the U.S. dollar throughout the month.
The upcoming Federal Open Market Committee meeting holds significant importance for the trajectory of gold prices. Market analysts, like Tim Waterer from KCM Trade, assert that the perceived dovishness or hawkishness from the Fed will heavily influence whether gold can make further strides towards the coveted $2,000 level in the near future.
Despite the optimistic sentiment surrounding gold, gold futures have experienced some downward pressure due to the strength of the U.S. dollar. S&P surveys released on Monday revealed that the U.S. economy experienced its slowest growth rate in July over the past five months. The S&P Flash U.S. services-sector index declined to 52.4 from the previous month's 54.4, hitting its lowest point since March. On the other hand, the S&P U.S. manufacturing sector index rose to 49.0 from 46.3, though it has remained in negative territory for several months.
Looking ahead, the Federal Reserve is not the only central bank holding a meeting this week. The European Central Bank and Bank of Japan also have policy meetings scheduled that could have potential impacts on global markets.
XAUUSD SELL 1962 - 1964💯💯
✅ TP1: 1957
✅ TP2: 1953
✅ TP3: 1946
🛑 SL: 1968
The upcoming Federal Open Market Committee meeting holds significant importance for the trajectory of gold prices. Market analysts, like Tim Waterer from KCM Trade, assert that the perceived dovishness or hawkishness from the Fed will heavily influence whether gold can make further strides towards the coveted $2,000 level in the near future.
Despite the optimistic sentiment surrounding gold, gold futures have experienced some downward pressure due to the strength of the U.S. dollar. S&P surveys released on Monday revealed that the U.S. economy experienced its slowest growth rate in July over the past five months. The S&P Flash U.S. services-sector index declined to 52.4 from the previous month's 54.4, hitting its lowest point since March. On the other hand, the S&P U.S. manufacturing sector index rose to 49.0 from 46.3, though it has remained in negative territory for several months.
Looking ahead, the Federal Reserve is not the only central bank holding a meeting this week. The European Central Bank and Bank of Japan also have policy meetings scheduled that could have potential impacts on global markets.
XAUUSD SELL 1962 - 1964💯💯
✅ TP1: 1957
✅ TP2: 1953
✅ TP3: 1946
🛑 SL: 1968
Note
Safe SELL price zoneNote
Gold gains on weaker dollar, traders focus on Fed decisionNote
Gold’s rally appears to be losing steam ahead of the US Federal Reserve, the European Central Bank, and the Bank of Japan policy meetings, raising the risk that the rebound this month is corrective.Note
waiting for CB news
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