Gold (June 21) Sink as USDX rallies, crude dips; Powell on deck
Gold prices plummeted during Tuesday's midday trading session in the US, as they faced pressure from a stronger US dollar index and a decrease in crude oil prices. August gold dropped $23 to $1,947.
The market is eagerly awaiting the latest thoughts from Federal Reserve Chairman Jerome Powell. He will provide a semi-annual monetary policy report to Congress on Wednesday and Thursday. Many expect Powell to reiterate comments from the Fed's press conference, which were cautious but still left room for higher interest rates in the future.
The market will closely scrutinize his remarks for any new clues on the timing of rate hikes. If Powell hints at hawkishness, it could boost the US dollar and Treasury yields. However, if he is more optimistic and doesn't provide new clues, it could weaken the greenback and dampen output.
The market is eagerly awaiting the latest thoughts from Federal Reserve Chairman Jerome Powell. He will provide a semi-annual monetary policy report to Congress on Wednesday and Thursday. Many expect Powell to reiterate comments from the Fed's press conference, which were cautious but still left room for higher interest rates in the future.
The market will closely scrutinize his remarks for any new clues on the timing of rate hikes. If Powell hints at hawkishness, it could boost the US dollar and Treasury yields. However, if he is more optimistic and doesn't provide new clues, it could weaken the greenback and dampen output.
On the other hand, the bearish camp aims to push the futures contract below the solid technical support level of $1,900. The first resistance levels observed are $1,971 and $1,987, while the first support levels are $1,936 and $1,925, respectively.