Shinobi - XAUUSD: The pressure from the strength of the USD
World gold prices this morning continued to decline with spot gold down 9.4 USD to 1,916.5 USD/ounce. Gold futures in December last traded at $1,941.6 per ounce, down $10.1 from dawn yesterday.
The world gold price continued to decline when subjected to technical selling in the context that gold lacked supporting factors. In the early morning, the USD and bond yields continued to increase, putting pressure on gold.
Recently, gold has been continuously affected by the rise of the greenback. However, Carley Garner, co-founder of brokerage firm DeCarley Trading, said that the greenback's momentum could run out as the US Federal Reserve (Fed) is unlikely to continue maintaining its policy stance. positive currency until year-end.
Garner expects the US Dollar Index to keep the resistance below 105 points. Ultimately, she forecasts the dollar will retest the support at 99. She said that if that support level in the USD is broken, gold's performance will return to the mid-1990s and if so, it is a game changer for gold.
The world gold price continued to decline when subjected to technical selling in the context that gold lacked supporting factors. In the early morning, the USD and bond yields continued to increase, putting pressure on gold.
Recently, gold has been continuously affected by the rise of the greenback. However, Carley Garner, co-founder of brokerage firm DeCarley Trading, said that the greenback's momentum could run out as the US Federal Reserve (Fed) is unlikely to continue maintaining its policy stance. positive currency until year-end.
Garner expects the US Dollar Index to keep the resistance below 105 points. Ultimately, she forecasts the dollar will retest the support at 99. She said that if that support level in the USD is broken, gold's performance will return to the mid-1990s and if so, it is a game changer for gold.
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The reason Garner is bullish on gold is because the precious metal has shown good resilience over the past few months. While bond yields in the US remain at 15-year highs above 4%, gold retains key support around the 20-day moving average.
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One factor that could spark a sell-off is if the Fed turns to a more neutral monetary policy stance, leaving interest rates unchanged through year-end. According to the CME FedWatch Tool, markets see a more than 90% chance of no rate hike by the end of this month and only a 50/50 chance of a rate hike in November.
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Despite signs that conditions in the US labor market are easing, the Federal Reserve (Fed) is expected to keep interest rates high for an extended period. Current market developments also include the possibility of a 25 basis point increase by year-end. This, in turn, maintains US Treasury yields high, which in turn supports the US Dollar causing gold to move in the opposite direction.
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BIG WIN !!! . Let's continue today
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TP1: 1918
TP2: 1914
SL: 1928