Price attempted to break above the horizontal trendline connecting gold price’s all-time highs since August 2020, a significant failure represented by a high range, bearish engulfing, and shooting star candlestick pattern which took the price from its peaks of $2150/OZ range back down to $2020/OZ.The above chart is for XAUUSD with XAUEUR and XAUGBP overlay on the same percentage scale, the latest price move on the three instruments is almost the same which indicates that interest rate speculation on USD was most likely the main reason for the recent decline in gold prices, the same chart also includes USA interest rates overlay on the left percentage scale reflecting the recent gold price action compared to interest rates on the Dollar since the FED began raising interest rates. Traders learned over the years that the phrase “Don’t fight the FED” remains in full effect, however, historically but to a much lesser extent, it has happened before when markets were ahead of the FED. Markets are convinced to a certain extent that the FOMC will end up having to cut rates in 2024 and the speculation around the number of rate cuts kept traders on edge, on the other hand, the Central Bank officials continue their hawkish interest rate tone, but markets are not fully listening with some traders go as far as expecting a 75-basis point rate but by mid-2024. ![]() Gold Price fell significantly last week after reaching an all-time high of $2150/Oz, the price fell to $2020/Oz within a day which left many traders stunned and unable to comprehend what has happened, and the more difficult question remains unanswered, what’s next for Gold Prices? Over the past few weeks/months, inflation has been in a downtrend in all the major economies globally, this kept the markets divided on how the FOMC and other major central bank’s next move will be regarding Interest rates.
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