GOLD OUTLOOK: FED DOT PLOT WEIGHING ON XAU/USD PRICE ACTIONGold and silver costs prolonged their post-FOMC nosedives throughout Thursday’s buying
GOLD OUTLOOK: FED DOT PLOT WEIGHING ON XAU/USD PRICE ACTION
Gold and silver costs prolonged their post-FOMC nosedives throughout Thursday’s buying and selling session. The valuable metals are actually down -5.5% and -7.2% on the week respectively. Promoting stress throughout XAU/USD and XAG/USD largely follows the large inflow of US Greenback power in response to the Federal Reserve bringing aheadits taper timeline.
Particularly, the most recent Fed dot plot revealed that central financial institution officers see two rate of interest hikes by the tip of 2023. This compares to market expectations solely searching for one fee hike in 2023 and the prior dot plot that confirmed lower than half of FOMC officers penciling in fee will increase by year-end 2023. In gentle of Fed Chair Powell downplaying the importance of the dot plot, nonetheless, there appears to be potential for gold worth motion to claw again latest draw back.
XAU/USD – GOLD PRICE CHART: WEEKLY TIME FRAME (NOVEMBER 2019 TO JUNE 2021)
Chart by @RichDvorakFX created utilizing TradingView
To not point out, close by help on the $1,765-price degree stands out as noteworthy technical barrier that gold bulls would possibly look to defend. Beneath this technical help zone resides a long-term ascending trendline along with the $1,675-price degree, which is underpinned by the underside Bollinger Band and year-to-date lows. Rebound efforts might see gold worth motion ricochet again towards the $1,900-handle. However, XAU/USD is more likely to proceed dealing with headwinds till the rally in actual yields stabilizes and the US Greenback squeeze finishes operating its course.
— Written by Wealthy Dvorak, Analyst for DailyFX.com
Join with @RichDvorakFX on Twitter for real-time market perception
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