Fundamental Descriptions: Gold Price is capitalizing on an overdue correction in the US dollar, as the Fed poured cold water on aggressive tightening bets. Fed Chair Jerome Powell explicitly said Wednesday that the US central bank is not considering a 75 bps rate hike in June, sounding a less hawkish tone than markets had expected. Powell also appealed to Americans struggling with high inflation to be patient while policymakers take the hard measures to bring it under control. Gold, which is often perceived as a hedge against rising costs, jumped 1% in the previous session on Powell's statement. U.S. Treasury yields also fell sharply on Wednesday, boosting the yellow metal.
Technical View: As of writing, gold was trading between S1 and S2. We may see it to make a another bull run towards 1920 , a support turned resistance in our chart.
Alternate Scenario: Any failed bull attempt may drag down the prices of gold back to the level of 1880.
Technical View: As of writing, gold was trading between S1 and S2. We may see it to make a another bull run towards 1920 , a support turned resistance in our chart.
Alternate Scenario: Any failed bull attempt may drag down the prices of gold back to the level of 1880.