Gold prices entered a bearish consolidation phase during the Asian session on Friday and hovered in a narrow trading range near the $1910-$1911 region, just above the lowest since March 16 touched today. before.
Federal Reserve (Fed) Chairman Jerome Powell, during a two-day hearing before congress, reiterated that the central bank is likely to raise interest rates again this year, albeit with " cautious pace", to combat high inflation
Looking at the chart, we can see that the h2 frame still has a clear downtrend, so we should prioritize to sell on the EMA area
Federal Reserve (Fed) Chairman Jerome Powell, during a two-day hearing before congress, reiterated that the central bank is likely to raise interest rates again this year, albeit with " cautious pace", to combat high inflation
Looking at the chart, we can see that the h2 frame still has a clear downtrend, so we should prioritize to sell on the EMA area
Comment:
Precious metals continue to come under strong selling pressure following comments from Federal Reserve Chairman Jerome Powell on the first day of hearings.
Chairman Jerome Powell affirmed that there are likely to be more rate hikes until more progress is made in reducing inflation.
Following the Federal Open Market Committee (FOMC) policy meeting last week, officials said interest rates will increase by a total of 50 basis points through the end of 2023. That means there will be two another rate hike assuming 25 basis points each.
The high interest rate environment often reduces the attractiveness of gold.
Chairman Jerome Powell affirmed that there are likely to be more rate hikes until more progress is made in reducing inflation.
Following the Federal Open Market Committee (FOMC) policy meeting last week, officials said interest rates will increase by a total of 50 basis points through the end of 2023. That means there will be two another rate hike assuming 25 basis points each.
The high interest rate environment often reduces the attractiveness of gold.
Comment:
GOLDEN MARKET ANALYSIS - WEEK 26 - 2023
This week, the international gold price fell from 1,958 USD/oz to 1,910 USD/oz, then recovered to 1,935 USD/oz and closed at 1,921 USD/oz.
The reason why international gold prices fell this week was because many central banks around the world simultaneously raised interest rates to curb inflation. In a surprise move, the Bank of England raised its key interest rate from 4.5% to 5%. This is the biggest rate hike since February 2023, bringing the prime rate to its highest level since 2008. At the same time, Norway's central bank has raised interest rates by 50 points and the National Bank of Switzerland raised interest rates by 25 points. In particular, the Turkish central bank raised interest rates by 6.5% to 15%.
This week, the international gold price fell from 1,958 USD/oz to 1,910 USD/oz, then recovered to 1,935 USD/oz and closed at 1,921 USD/oz.
The reason why international gold prices fell this week was because many central banks around the world simultaneously raised interest rates to curb inflation. In a surprise move, the Bank of England raised its key interest rate from 4.5% to 5%. This is the biggest rate hike since February 2023, bringing the prime rate to its highest level since 2008. At the same time, Norway's central bank has raised interest rates by 50 points and the National Bank of Switzerland raised interest rates by 25 points. In particular, the Turkish central bank raised interest rates by 6.5% to 15%.
✅Buy the $1,924-$1,926 range when the price hits the resistance area.
✖️Stoploss: $1,930