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Gold in range on rates and inflationary tug of war -by Ecork

Gold price analysis and news

  • Gold will likely continue to trade intermittently
  • Gold techniques to watch

Gold will likely continue to trade intermittently

Gold is on track for a weekly loss for the first time in 4 weeks as rising global yields and a stronger dollar continue to pressure the precious metal. However, price action remains somewhat choppy, which seems likely to continue between 1800 and 1880.

As I said earlier, I am experiencing an upside for gold due to the huge rise in real returns (see chart below). Although what I would say is that yields should start to decline with a return to 3% for 10 US years (at 3.25% currently), this will keep gold steady. Ultimately, futures price action is likely to remain in a narrow range in the short term.

Gold vs. real returns to the United States 10 riyals

Source: Refinitiv

The Fed speaks in focus

Looking ahead to next week, the Fed’s talk will be the main risk to gold amid a slew of Fed officials on tap, most notably, Fed Chair Powell who testified on June 22.second abbreviation. As seen in his press conference, the Fed Chairman indicated that a 75 basis point move would not be popular. Although even the most dovish on the committee, such as the Fed’s Kashkari, are talking about the possibility of a 75 basis point rate hike in July, this will remain on the agenda during President Powell’s testimony. However, in light of recent data that prompted Federal Reserve officials to backtrack on their future guidance, economic data will be the main focus for measuring monetary policy outlook.

Gold techniques to watch

the support: 1833 (61.8% Fib), 1800 (Psychic), 1786 (May 16The tenth a little)

resistance: 1843 (200MA), 1874 (50DMA), 1880 (monthly peaks)

Gold Price Forecast: Gold in the range of rates and the inflationary tug of war

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