XAUUSD: ATH near 2200 USD, Gold continues to correct
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Currently, XAUUSD has paused after a strong recovery. The all-time high level around 2195 USD has been formed, followed by a period of correction. XAUUSD has experienced significant volatility this week, specifically breaking the support level at 2175 and testing the level at 2150. There is a possibility of further decline, but after retesting the resistance level.
It is currently trading around $2,173, marking a 0.03% decline on the day. The fundamentals are negative, but we cannot be subjective if the price tries to make a strong breakout.
In terms of impacting factors, the latest report on inflation in the US, which is higher than expected, may hinder Fed officials from loosening monetary policy in June, which has a negative impact on gold.
Regarding the new prospects of XAUUSD: On the 1-hour chart, XAUUSD is currently facing resistance at the 2175-2175 level, with price continuously reacting around this level for a few hours. In the event that sellers attempt to push the price down, there is a possibility of a shakeout scenario (breaking below 2165) and sellers liquidating before a deeper decline towards the 2144 - 2100 zone.
Note: If buyers manage to break the psychological resistance of $2180 we could see gold heading towards local highs and $2200 before falling further.
Basic overview:
The central bank will also present a new Summary of Economic Projections (SEP), commonly known as a dot plot, which will provide an update on policymakers' views on growth and inflation book. It will also show how many rate cuts—if any— voting members are willing to make in the coming months. The dot plot had previously surprised market players, with policymakers hinting at three potential cuts by 2024. However, no specific date was announced and the meeting summary suggests policymakers will remain dependent on data amid high levels of uncertainty.
Currently, XAUUSD has paused after a strong recovery. The all-time high level around 2195 USD has been formed, followed by a period of correction. XAUUSD has experienced significant volatility this week, specifically breaking the support level at 2175 and testing the level at 2150. There is a possibility of further decline, but after retesting the resistance level.
It is currently trading around $2,173, marking a 0.03% decline on the day. The fundamentals are negative, but we cannot be subjective if the price tries to make a strong breakout.
In terms of impacting factors, the latest report on inflation in the US, which is higher than expected, may hinder Fed officials from loosening monetary policy in June, which has a negative impact on gold.
Regarding the new prospects of XAUUSD: On the 1-hour chart, XAUUSD is currently facing resistance at the 2175-2175 level, with price continuously reacting around this level for a few hours. In the event that sellers attempt to push the price down, there is a possibility of a shakeout scenario (breaking below 2165) and sellers liquidating before a deeper decline towards the 2144 - 2100 zone.
Note: If buyers manage to break the psychological resistance of $2180 we could see gold heading towards local highs and $2200 before falling further.
Basic overview:
The central bank will also present a new Summary of Economic Projections (SEP), commonly known as a dot plot, which will provide an update on policymakers' views on growth and inflation book. It will also show how many rate cuts—if any— voting members are willing to make in the coming months. The dot plot had previously surprised market players, with policymakers hinting at three potential cuts by 2024. However, no specific date was announced and the meeting summary suggests policymakers will remain dependent on data amid high levels of uncertainty.
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Comment:
Comment:
the price may test the resistance, but it would be logical to see further correction at these liquidity areas
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Comment:
Fed policymakers have brought down price pressures significantly but the last mile before the 2% target appears to be sticker than progress yet made. The prospect of high interest rates benefited the US Dollar (USD), weighing on the XAU/USD pair.
Comment:
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