Breaking the 1893 support zone, gold plummeted to 1874
Gold price dropped nearly 40% in just 2 days, this is a huge crisis for XAUUSD traders
Is there any chance for gold to return? I am inclined to the trend that gold will return to the 1898-1900 area before plummeting again to form a new "Down Theory".
Let's refer to some of the following news:
This morning, the world gold price dropped sharply to 1,876.2 USD/ounce. Gold futures last traded at $1,890.90 an ounce
World gold slipped from the important psychological support level below 1,900 USD/ounce in early morning trading this morning as the hawkish stance of the US Federal Reserve (Fed) continued to promote the increase in bond yields. bonds and the dollar and crushed the bullish trend in the metals market.
Last week, the Federal Open Market Committee (FOMC), the Fed's policy-setting body, decided to keep the funds rate steady at 5.25% and 5.50%. JP Morgan CEO Jamie Dimon recently said that the market needs to prepare for the Fed funds rate at 7% in the coming months and this is a bad scenario for gold.
According to some analysts, the decline in gold prices could push prices to a 2023 low of $1,810/ounce on the spot market. A sell-off was triggered after the Fed signaled it would maintain a restrictive monetary policy for the foreseeable future even as the tightening cycle ends. The US Central Bank's aggressive stance pushed bond yields to a new 16-year high and the dollar to its highest since November, pushing gold off its August low of $1,885. ounce. James Stanley, senior market strategist at Forex.com, forecasts initial resistance around $1,850 an ounce.
While many experts say higher inflation will support gold, according to Marc Chandler, CEO at Bannockburn Global Forex Exchange, higher inflation means higher interest rates, making the metal interest-free. become somewhat worse. Chandler predicts that gold will slide to $1,840/ounce.
Even so, some analysts maintain a long-term bullish outlook for the precious metal. Ole Hansen, commodity strategist at Saxo Bank, said that rising energy prices coupled with slower economic growth are creating an environment of stagflation, which he expects will eventually push up prices. Gold is back above 2,000 USD/ounce.
Gold price dropped nearly 40% in just 2 days, this is a huge crisis for XAUUSD traders
Is there any chance for gold to return? I am inclined to the trend that gold will return to the 1898-1900 area before plummeting again to form a new "Down Theory".
Let's refer to some of the following news:
This morning, the world gold price dropped sharply to 1,876.2 USD/ounce. Gold futures last traded at $1,890.90 an ounce
World gold slipped from the important psychological support level below 1,900 USD/ounce in early morning trading this morning as the hawkish stance of the US Federal Reserve (Fed) continued to promote the increase in bond yields. bonds and the dollar and crushed the bullish trend in the metals market.
Last week, the Federal Open Market Committee (FOMC), the Fed's policy-setting body, decided to keep the funds rate steady at 5.25% and 5.50%. JP Morgan CEO Jamie Dimon recently said that the market needs to prepare for the Fed funds rate at 7% in the coming months and this is a bad scenario for gold.
According to some analysts, the decline in gold prices could push prices to a 2023 low of $1,810/ounce on the spot market. A sell-off was triggered after the Fed signaled it would maintain a restrictive monetary policy for the foreseeable future even as the tightening cycle ends. The US Central Bank's aggressive stance pushed bond yields to a new 16-year high and the dollar to its highest since November, pushing gold off its August low of $1,885. ounce. James Stanley, senior market strategist at Forex.com, forecasts initial resistance around $1,850 an ounce.
While many experts say higher inflation will support gold, according to Marc Chandler, CEO at Bannockburn Global Forex Exchange, higher inflation means higher interest rates, making the metal interest-free. become somewhat worse. Chandler predicts that gold will slide to $1,840/ounce.
Even so, some analysts maintain a long-term bullish outlook for the precious metal. Ole Hansen, commodity strategist at Saxo Bank, said that rising energy prices coupled with slower economic growth are creating an environment of stagflation, which he expects will eventually push up prices. Gold is back above 2,000 USD/ounce.
