XAUUSD H1 | Market Outlook

- Federal Reserve officials have the authority and influence to change the monetary policy, and the market is extremely sensitive to their words and actions. Central banks around the world continue to threaten tightening, but as soon as we have a situation where they start loosening again, gold is going to be one of the best investments out there considering its historical negative correlation.
- The market more likely than not will continue to be noisy, as the gold market is directly influenced by the US dollar, and of course interest rates in America. Currently, it’s likely that we continue to see volatility as so many people are all over the place when it comes to what the Federal Reserve will do next. If they do continue to tighten monetary policy, that could cause a little bit of a drag on gold. On the other hand, if we were to break above the 1800 level, then it’s possible that we could go much higher, eventually reaching toward the 2000 level.