GOLD corrects strongly, FOMC minutes, main trend area
Updated
Gold fell sharply under pressure from profit-taking activities in the market and the Fed's (FOMC) meeting minutes.
According to the Federal Open Market Committee meeting minutes, although US monetary policy has become a secondary factor in the gold market, continued inflation could cause additional selling pressure as it could force The Federal Reserve must adjust its monetary policy, personally, the Fed is unlikely to increase gold interest rates again.
Gold's rally cooled as investors took profits and traders cut bets on the Federal Reserve cutting interest rates this year.
With the release of the Federal Reserve meeting minutes, market expectations of the Federal Reserve cutting interest rates continued to decline, leading to increased purchases of the US Dollar, making gold expensive. than for holders of other currencies.
According to minutes from the U.S. central bank's April 30-May 1 meeting, Fed officials said it will take longer than previously expected to build confidence that inflation will pick up. 2%.
XAUUSD is known as an inflation hedge, but the opportunity cost of holding this non-yielding asset increases as interest rates rise.
Recent economic data shows inflation trending downward, but Fed policymakers said the central bank should wait a few more months to ensure inflation actually returns to its 2% target first. when cutting interest rates.
Analysis of technical prospects forXAUUSD
On the daily chart, after gold broke through most of the key technical levels and it is now also in a key price area for a technical bullish outlook with a long-term downtrend and moving averages 21 days (EMA21).
In the immediate future, if the gold price returns above the 0.236% Fibonacci level, it will have enough conditions to recover with a short-term uptrend from the price channel.
During the day, the trend of gold price is still downtrend with notable technical levels that will be listed as follows.
Support: 2,366 – 2,353USD
Resistance: 2,384 – 2,400 – 2,410USD
🪙SELL XAUUSD | 2406 - 2404
⚰️SL: 2410
⬆️TP1: 2399
⬆️TP2: 2394
🪙BUY XAUUSD | 2344 - 2346
⚰️SL: 2340
⬆️TP1: 2351
⬆️TP2: 2356
According to the Federal Open Market Committee meeting minutes, although US monetary policy has become a secondary factor in the gold market, continued inflation could cause additional selling pressure as it could force The Federal Reserve must adjust its monetary policy, personally, the Fed is unlikely to increase gold interest rates again.
Gold's rally cooled as investors took profits and traders cut bets on the Federal Reserve cutting interest rates this year.
With the release of the Federal Reserve meeting minutes, market expectations of the Federal Reserve cutting interest rates continued to decline, leading to increased purchases of the US Dollar, making gold expensive. than for holders of other currencies.
According to minutes from the U.S. central bank's April 30-May 1 meeting, Fed officials said it will take longer than previously expected to build confidence that inflation will pick up. 2%.
XAUUSD is known as an inflation hedge, but the opportunity cost of holding this non-yielding asset increases as interest rates rise.Recent economic data shows inflation trending downward, but Fed policymakers said the central bank should wait a few more months to ensure inflation actually returns to its 2% target first. when cutting interest rates.
Analysis of technical prospects for
XAUUSD On the daily chart, after gold broke through most of the key technical levels and it is now also in a key price area for a technical bullish outlook with a long-term downtrend and moving averages 21 days (EMA21).
In the immediate future, if the gold price returns above the 0.236% Fibonacci level, it will have enough conditions to recover with a short-term uptrend from the price channel.
During the day, the trend of gold price is still downtrend with notable technical levels that will be listed as follows.
Support: 2,366 – 2,353USD
Resistance: 2,384 – 2,400 – 2,410USD
🪙SELL XAUUSD | 2406 - 2404
⚰️SL: 2410
⬆️TP1: 2399
⬆️TP2: 2394
🪙BUY XAUUSD | 2344 - 2346
⚰️SL: 2340
⬆️TP1: 2351
⬆️TP2: 2356
Note
🔹Goldman Sachs: Saudi Arabia aims to spend $3.3 trillion on investmentsGoldman Sachs Bank confirmed in a research note issued yesterday, Wednesday, that Saudi Arabia is working to increase local investments, with the aim of increasing the share of non-oil GDP in the total domestic product to 65% within 6 years, from about 45% currently.
Trade active
Plan BUY Close 1/2 + 60pips. Move SL to Entry🔥Note
- The US dollar remains, by a very large margin, the world's reserve currency.- Recent events indicate that the dollar's influence has increased significantly.
- The real return on capital is not appropriate to use to measure long-term neutral interest.
- Real 10-year Treasury yields are a good real proxy for the theoretical value of the neutral interest rate.
Note
Gold prices witnessed a noticeable rise at the beginning of the week’s trading, today, Monday, in an attempt to recover from their lowest level in two weeks, supported by the decline in the US dollar index, in addition to the decline in US bond yields, amid markets’ anticipation of the release of personal consumer spending index data in... The US Federal Reserve's preferred inflation rate is scheduled to be released later this week, which may have a clear impact on the upcoming trading of both the US dollar and gold metal.Note
Gold prices rose slightly on Monday (May 27) from a two-week low recorded in the previous session, as investors assessed fading hopes of a US interest rate cut ahead of the inflation report. Key findings announced this weekend.Note
🟢Important statements from the Fed...it takes a lot to take one stepMinneapolis Fed President Neel Kashkari told CNBC on Tuesday that the Fed should wait for more significant progress in inflation before considering cutting interest rates.
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🧩Forex signals have a high win rate
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