Gold has achieved its highest point in two weeks
Gold prices reached a two-week high with a 0.5% increase on Monday, despite a relatively uneventful economic calendar. Investors are closely watching upcoming interest rate decisions from several central banks. The Federal Reserve (Fed) is set to announce its decision tomorrow, followed by the Bank of England and the Swiss National Bank on Thursday, and the Bank of Japan on Friday.
The Fed's decision carries the most significance for XAU/USD. While the market expects the Fed to maintain its base rate, traders will carefully analyze the post-meeting statement for hints about future U.S. interest rates. Any hawkish comments or suggestions of prolonged rate elevation could push gold prices lower.
XAU/USD showed slight gains during the Asian session, but low volatility is expected due to a lack of significant events. According to Reuters analyst Wang Tao, spot gold may retrace to a support zone of $1,921–$1,927 per ounce, as it encounters resistance at $1,932.
The Canadian dollar (CAD) strengthened by 0.28% on Monday as the U.S. dollar weakened ahead of the Federal Reserve's interest rate decision. USD/CAD reached a one-month low as positive macroeconomic data from China boosted global economic optimism. Additionally, rising crude oil prices supported the Canadian dollar.
USD/CAD saw a significant drop during the Asian session. Traders should focus on the release of the Canadian Consumer Price Index (CPI) at 12:30 p.m. UTC today, which will have a significant impact on the Bank of Canada's future interest rate decisions. The Bank of Canada recently maintained its base rate at 5% but hinted at potential rate hikes if inflation remains high.
According to Adam Button, chief currency analyst at ForexLive, Canadians may not see an end to rate hikes anytime soon due to persistent inflation and increasing energy prices. A higher-than-expected CPI could lead USD/CAD to further decline, possibly towards 1.34200. However, if the CPI falls below expectations, the sell-off may halt, and USD/CAD could rebound towards 1.35000.
The Fed's decision carries the most significance for XAU/USD. While the market expects the Fed to maintain its base rate, traders will carefully analyze the post-meeting statement for hints about future U.S. interest rates. Any hawkish comments or suggestions of prolonged rate elevation could push gold prices lower.
XAU/USD showed slight gains during the Asian session, but low volatility is expected due to a lack of significant events. According to Reuters analyst Wang Tao, spot gold may retrace to a support zone of $1,921–$1,927 per ounce, as it encounters resistance at $1,932.
The Canadian dollar (CAD) strengthened by 0.28% on Monday as the U.S. dollar weakened ahead of the Federal Reserve's interest rate decision. USD/CAD reached a one-month low as positive macroeconomic data from China boosted global economic optimism. Additionally, rising crude oil prices supported the Canadian dollar.
USD/CAD saw a significant drop during the Asian session. Traders should focus on the release of the Canadian Consumer Price Index (CPI) at 12:30 p.m. UTC today, which will have a significant impact on the Bank of Canada's future interest rate decisions. The Bank of Canada recently maintained its base rate at 5% but hinted at potential rate hikes if inflation remains high.
According to Adam Button, chief currency analyst at ForexLive, Canadians may not see an end to rate hikes anytime soon due to persistent inflation and increasing energy prices. A higher-than-expected CPI could lead USD/CAD to further decline, possibly towards 1.34200. However, if the CPI falls below expectations, the sell-off may halt, and USD/CAD could rebound towards 1.35000.
Comment:
The market can still continue to go forward
Comment:
The market still went exactly as I predicted
Comment:
There will be times when the market needs to retest some small time frames
