Jump to content

Gold Price Drop Tests 7-Month Uptrend as Key US Inflation Data Looms


MongiIG

Recommended Posts

GOLD PRICE OUTLOOK:

  • Gold prices sink as the markets re-price for a more hawkish Fed
  • Traders’ focus now turns to December’s US PCE inflation gauge
  • Prices are on the cusp of breaching 7-month rising trend support
Gold Price Drop Tests 7-Month Uptrend as Key US Inflation Data Looms

Gold prices have taken a beating in the wake of this week’s FOMC monetary policy announcement. A relatively staid statement was followed by an explosive press conference with Fed Chair Jerome Powell, where he took an assertively hawkish stance.

Financial markets responded accordingly. Rate hike expectations swelled, driving bond yields higher while priced-in inflation bets cooled. That lifted real interest rates, undermining bullion’s alternative store-of-value appeal. Prices plunged, suffering the largest two-day loss since late November.

The spotlight now turns to the release of the Fed’s favored PCE inflation gauge. December’s reading is expected to show that core price growth accelerated to 4.8 percent on-year, marking the fastest pace in nearly four decades. An outcome reinforcing this week’s hawkish outlook pivot may give gold another nudge lower.

Near-term follow-through might be limited absent an eye-catching upside surprise however. The markets have already marked a significant re-pricing of rate hike bets this week. A PCE outcome that registers broadly in line with baseline forecasts may thus open the door for a bit of consolidation ahead of the weekend.

 

GOLD TECHNICAL ANALYSIS – RISING TREND SUPPORT UNDER PRESSURE

Gold prices sank to rising trend support guiding them higher since August 2021. A breakdown here may expose support anchored at 1750.78. Resistance remains in the 1834.14-49.64 area, with a breach above its upper bound setting the stage to challenge November’s swing top at 1877.15.

Gold Price Drop Tests 7-Month Uptrend as Key US Inflation Data Looms

Gold price chart created using TradingView

GOLD TRADING RESOURCES

 

Written by Ilya Spivak, Head Strategist, APAC for DailyFX. 28th Jan 2022

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

    • The BLUM project has recently gained attention in the cryptocurrency community due to several developments such as  Introduction of a mining game on the TON ecosystem, allowing users to earn $BLUM tokens.  Announcement of new strategic partnerships Upcoming features including Tribes and Memepad functionalities.  Active community engagement through events and rewards 5. Recognition from notable figures in the crypto space Key upcoming events: Token Generation Event (TGE) for the BLUM mining game scheduled for September 20, 2024 Coinciding airdrop of BLUM tokens to the community The project plans to provide liquidity on centralized exchanges such as Bitget and Binance, as well as decentralized exchanges like Uniswap, Curve, and PancakeSwap. These developments have contributed to increased discussions about BLUM on social media platforms, particularly Twitter. As the crypto landscape evolves rapidly, interested individuals are encouraged to stay informed about BLUM's progress through official channels and related TON communities like r/TONDiscussion.  As with any cryptocurrency project, potential participants should conduct thorough research and consider their own risk tolerance before engaging.
    • Counter Fire is poised to redefine the gaming industry with its innovative blend of competitive gameplay and blockchain technology. The game offers multiple modes, including team-based matches of quads, duos, and solos along with solo missions, with deep customization options and dynamic battle scenarios. While the core gameplay of Counter Fire is similar to PUBG, a battle-royal where the last-man or last-team standing wins in a survival gameplay, users earn while playing Counter Fires. The project has been buzzing the ecosystem as the airdrop claim went live today so users can claim their $CEC and await listing on 9th Sept. While gamers continue to claim their tokens, some analysts have start speculating that the project will redefine the gaming landscape citing the project partnership with likes of YoubiCapital, HASHKEY, KERNEL ventures and many more and the fact that the project raised over $5 million as the base for their argument. The project partnership with Bitget could also be a reason it continues to gain such exposure as players can only claim their token to the exchange. Though, as players claim their token to the exchange, they could benefit some reward from the 1 million $CEC reward pool. I still think many exchanges should list the token so gamers can have many choices.
    • Hi @feirb1, Thank you for your post. Please note that we offer T-Bills for trading on leveraged accounts. By trading these, you will be speculating on the price movements. This means that, when trading, you´ll never take ownership of an actual t-bill. Instead, you´ll take a position on the market either rising in value or falling. Thanks, KoketsoIG
×
×
  • Create New...
us