Skip to content 
Instrument: GOLD
Bullish Preference:
A Buy position is envisaged if the price trades above 1965.79 with take profit at 1969.48
Bearish Preference:
A Sell position is envisaged if the price trades below 1961.02 with take profit at 1954.89
Fundamentals:
2:30 PM USD Trade Balance
Comment:
Gold price drops further as safe-haven demand diminishes amid no further escalation in geopolitical tensions. A recovery in the US Dollar and long-term bond yields further weigh on the precious metal.
The downside move in Gold, however, may be short-lived as investors see an end to the Federal Reserve’s (Fed) rate-tightening campaign, due to gradually easing consumer inflation and higher Treasury yields, which have tightened financial conditions significantly.
Commentary from Federal Reserve Chairman Jerome Powell on Wednesday could drive further action in the US Dollar and bond markets. Powell may give an idea of whether investors should expect more interest rate hikes this year to ensure a return of inflation to the Fed’s 2% target.
Analysis: SCRUM Team
