AUDUSD Short (based on potential rate increase)
16/11/2022 | 04:34
The price of gold stabilized near a three-month high on Wednesday as signs of cooling U.S. inflation boosted bets for lower rate hikes as markets waited for more. clarity regarding reports of Russian missiles killing two people in Poland.
= traders are betting on a rate cut, so gold goes up and the dollar goes down
"Gold is still largely pinned on the Fed....We can see gold continuing to climb from last week's peak, but it hasn't really found a terrific follow-up," Ilya Spivak said. , currency strategist at DailyFX.
= Gold peaks and enters a dwell zone waiting for the next meeting
“Needless to say wild card type factors may exist, like some kind of more aggressive and more immediate escalation in Ukraine, you could see gold turn reactive.”
= Gold remains sensitive to Ukrainian news
Data released on Tuesday showed that U.S. producer prices rose less than expected in October, further evidence that inflation is beginning to subside.
The data, which follows October's weaker-than-expected increase in consumer prices last week, bolstered hopes that the US Federal Reserve may slow its interest rate hikes going forward.
= Fed may be tempted to cut rates, traders say
However, Atlanta Fed President Raphael Bostic said he saw little evidence that aggressive monetary policy tightening was slowing inflation, predicting more hikes would be needed to bring inflation back down. Fed's 2% target.
= Monetary policy makers stick to their guns despite the numbers
While gold is used as a safe investment in times of political and financial uncertainty, rising interest rates tend to tarnish bullion's appeal, as the metal earns no interest.
= If the Fed continues to raise rates, the dollar will rise again and gold will fall
The price of gold stabilized near a three-month high on Wednesday as signs of cooling U.S. inflation boosted bets for lower rate hikes as markets waited for more. clarity regarding reports of Russian missiles killing two people in Poland.
= traders are betting on a rate cut, so gold goes up and the dollar goes down
"Gold is still largely pinned on the Fed....We can see gold continuing to climb from last week's peak, but it hasn't really found a terrific follow-up," Ilya Spivak said. , currency strategist at DailyFX.
= Gold peaks and enters a dwell zone waiting for the next meeting
“Needless to say wild card type factors may exist, like some kind of more aggressive and more immediate escalation in Ukraine, you could see gold turn reactive.”
= Gold remains sensitive to Ukrainian news
Data released on Tuesday showed that U.S. producer prices rose less than expected in October, further evidence that inflation is beginning to subside.
The data, which follows October's weaker-than-expected increase in consumer prices last week, bolstered hopes that the US Federal Reserve may slow its interest rate hikes going forward.
= Fed may be tempted to cut rates, traders say
However, Atlanta Fed President Raphael Bostic said he saw little evidence that aggressive monetary policy tightening was slowing inflation, predicting more hikes would be needed to bring inflation back down. Fed's 2% target.
= Monetary policy makers stick to their guns despite the numbers
While gold is used as a safe investment in times of political and financial uncertainty, rising interest rates tend to tarnish bullion's appeal, as the metal earns no interest.
= If the Fed continues to raise rates, the dollar will rise again and gold will fall