After a significant decline in last week's closing, gold prices fluctuated in early trading this week. The price of gold was negatively affected by Jerome Powell's insistence on tightening monetary policy, as Powell did not rule out the possibility of further interest rate hikes.
The market expects the Federal Reserve's financial tightening cycle of raising interest rates about 11 times in a year and a half to come to an end, with interest rates reaching their highest level in about 22 years.
The easing of conflicts in the Middle East, the possibility of large-scale conflicts being ruled out, and the intervention of some regional powers have all brought pressure to gold prices, leading to an increase in demand for gold. As geopolitical concerns escalate.
Meanwhile, investors are paying attention to a Moody's report that downgrades the outlook for the United States from stable to negative. The main reasons for this reduction are the doubts about the future of US debt caused by the partisan conflict in Congress, and the negative impact on economic growth expected from the sharp interest rate hike.
The report may be a sign of a renewed decline in the US dollar, as it has recorded a significant decline since the release of the non farm employment report earlier this month, pushing the US dollar to its lowest level in eight weeks.
Investors are waiting for this week's US inflation data, which is an important indicator of the direction of US monetary policy.
Technically, gold prices fluctuate and decline during European trading hours. It is stable at the strong demand level shown in the chart. Within the four hour time range shown in the chart, prices are also trading within the bearish price channel.
Currently, price trading is below resistance levels, concentrated between 1953 and 1961 levels, while price trading is above support levels, concentrated between 1932 and 1927 levels.
At the same time, prices traded between the 50 and 200 moving averages within the daily time range, and fell below these averages within the four hour time range, indicating that gold prices are currently facing selling pressure. It is expected that the price of gold will rise, especially if it stabilizes above the specified demand level. Please follow the numbers in the recommendations while maintaining capital management.
At 17:13 Beijing time, spot gold was trading at $1936.80 per ounce.
