During the Asian session on Friday, spot gold fluctuated narrowly at a low of nearly a month and a half, and is currently trading near US11,956.93 per ounce.Gold prices fell sharply on Thursday, reaching as low as US11,951.88 per ounce, a new low since April 3. Because of the dazzling performance of the number of initial jobless claims in the United States, Fed officials made further speeches, which caused the Fed to raise interest rates in June. Expectations for interest rate increases have risen sharply, and the dollar index and US bond yields have soared to nearly two-month high levels, which has a significant impact on gold prices, and optimism about reaching a debt ceiling agreement has also suppressed gold's safe-haven buying demand.
In addition to the relatively active job market, some optimism about the debt ceiling negotiations has also strengthened the dollar and supported the stock market, partially weakening the demand for risk aversion.At present, the market expects the probability of another interest rate hike in June to be about 36%, while a month ago, the probability of another interest rate cut in June was expected to be 20%.This is a huge shift in market expectations, which has greatly hit the morale of the bulls, and the short-term gold price has been significantly biased towards the bears.Overall, although the weakness of the U.S. property market continues, the geopolitical situation between Russia and Ukraine is tense, and the United States and other G7 countries will increase sanctions against Russia, gold prices will still have a chance to rebound slightly after a sharp fall in the short term, but the soaring expectations of the Federal Reserve's interest rate hike in June and the strong U.S. dollar are more obvious to gold prices. Before regaining the 55-day moving average of 1972.66, the gold price market is still biased towards a volatile downward trend.
Signal accuracy 95% share this point of view with my friends and hope you can earn more money and achieve your dreams. Friends in need can keep up.
Trade active:
I will announce today's signal on my free channel later, if you haven't joined yet, please do it as soon as possible.The opportunity is fleeting
