Jump to content

Gold (XAU/USD) Buffeted by Fed Rate Hike Risk and Russia/Ukraine War Fears


MongiIG

Recommended Posts

GOLD PRICE (XAU/USD), CHART, AND ANALYSIS

  • Wednesday’s FOMC monetary policy decision remains key.
  • Gold getting a risk-off bid as Russia ramps up invasion fears.
gold-bars (1).jpg

For all market-moving data releases and events, check out the DailyFX Calendar

Tomorrow’s FOMC rate decision and chair Powell’s subsequent press conference will hopefully give the markets a clear idea of the number and speed of interest rate hikes in the US this year, and next, and how the central bank will start to reduce its bloated balance sheet. Increasingly hawkish market expectations are starting to be reined back and tomorrow’s press conference will hopefully give markets more detail and temper the current volatile market conditions.

S&P Forecast: Rare Reversal Price Action in US Markets, Traders Switch to Sell the Rip

While interest rates will weigh on the price of the precious metal, increased fears that Russia will invade Ukraine is giving gold a flight-to-safety bid, along with the Japanese Yen, Swiss Franc, and longer-dated US Treasuries. Russia has massed around 100,000 troops near Ukraine’s border, sparking calls for ‘an unprecedented package of sanctions’ against the aggressor. This two-way struggle will keep traders on their toes and increase volatility in the precious metal over the weeks ahead.

The daily gold chart shows a recent series of higher highs and higher lows being made in the last six weeks as the precious metal moves slowly higher in a basic uptrend channel. All three simple moving averages are now back in a positive lineup, while longer-term horizontal resistance around $1,837/oz. is currently being tested. Above here, resistance lies at $1,849 and the multi-month high at $1,877/oz.

GOLD (XAU/USD) DAILY PRICE JANUARY 25, 2022

Gold (XAU/USD) Buffeted by Fed Rate Hike Risk and Russia/Ukraine War Fears

Retail trader data show 69.31% of traders are net-long with the ratio of traders long to short at 2.26 to 1. The number of traders net-long is 1.57% lower than yesterday and 1.26% lower from last week, while the number of traders net-short is 9.35% higher than yesterday and 1.48% lower from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Gold prices may continue to fall. Positioning is less net-long than yesterday but more net-long from last week. The combination of current sentiment and recent changes gives us a further mixed Gold trading bias.

What is your view on Gold – bullish or bearish?

 

 

Jan 25, 2022 |  Nick Cawley, Strategist. DailyFX

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • I believe DOG, as a memecoin is already quite popular and making a buzz. But as to your question, there are always new entries into the crypto space and when a reputable CEX like Bitget list it, it will substantially expose it to new communities and potential investors...    So all in all, I believe it will be good for DOG and it's future prospects! 
    • Sometimes ago, there was a CEX offering something similar but it was for new users and I even got to know about it a bit too late so I just didn't bother.   I think it's always great to see a CEX like Bitget offering this kinda promo for both new and existing users...    Thanks OP for the early heads up 👍
    • I saw Taiko on my TL yesterday but I didn't particularly pay much attention to it... But it seem they are on a good path and have forged some reputable partnerships along the way...  I have to say it's association with big guns of the industry like OKX, Kucoin etc makes it a good prospect and if you can get some of the coins early in the Bitget Pre-Market trading as you said, it will probably be a good investment in a long run! 
×
×
  • Create New...
us