On Tuesday (November 211) in the European market, spot gold trading was around $1987 per ounce, climbing nearly $10 during the day. Gold prices broke above $1990 per ounce earlier on Tuesday. On this trading day, gold traders will focus on the minutes of the Federal Reserve meeting, which is expected to trigger a major trend in the gold market.
FXStreet analyst Dhwani Mehta pointed out that due to the continued weakness of the US dollar, gold prices have returned to their upward trend, targeting $2000 per ounce. The dovish Federal Reserve is expected to continue to depress the yield of US treasury bond bonds and support the gold price.
Mehta said that from a technical perspective, gold prices are holding onto the 21 day moving average of $1975 per ounce, and the bullish relative strength index (RSI) suggests that there will be more room for gold prices to rise in the future.
The recent series of US economic data has reinforced people's bets that the Federal Reserve will end its interest rate hike cycle, and several Fed officials have expressed a balanced tone in their speeches.
The market currently expects a 50% probability that the Federal Reserve will cut interest rates by 25 basis points as early as May next year. This dove turn has become the key catalyst behind the US treasury bond bond yield and the selling of the US dollar, helping the gold price maintain above the psychological level of US $1950.
There are reports that India's gold imports surged by 60% in October compared to the same period last year, reaching a 31 month high, which also provides support for gold prices.
Focus on the minutes of the Federal Reserve meeting
Mehta stated that looking ahead to this trading day, US existing home sales data will provide some trading momentum for the US dollar. However, the main event risk on Tuesday remains the release of the Federal Reserve's November meeting minutes, which may provide new hints for the Fed's interest rate outlook.
At 03:00 Hong Kong time on Wednesday, the Federal Open Market Committee (FOMC) of the United States will release the minutes of its November monetary policy meeting. Analysts say that if the wording of the Federal Reserve minutes is dove like, the US dollar may be further suppressed, thereby driving gold prices to continue to strengthen.
FXStreet analyst Lallalit Srijandorn said that people's attention will shift to Tuesday's FOMC meeting minutes. Investors believe that the Federal Reserve has ended its interest rate hike cycle and expect it to begin cutting rates around mid-2024. This lowers the US dollar and boosts gold denominated in US dollars.
FXStreet analyst Mat í as Salord said that on Tuesday, the Federal Reserve will release its latest meeting minutes. The market expects that the Federal Reserve has ended raising interest rates, which will affect the US dollar in the short term and keep gold at an upward risk.
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FXStreet analyst Dhwani Mehta pointed out that on Monday, gold prices closed above the 21 day Simple Moving Average (SMA) of $1975 per ounce, which was briefly below during the day. This bullish signal seems to provide new impetus for gold buyers as they attempt to regain the $2000/ounce mark.
On the 14th, the relative strength index (RSI) pointed upwards above the midline, indicating more room for upward movement.
Mehta stated that if gold buyers find a strong option above the $2000/ounce level
