Gold Steady Under $1,800 – Eyes on US FOMC Meeting Minutes - Forex News by FX Leaders
Gold Steady Under $1,800 - Eyes on US FOMC Meeting Minutes

Gold Steady Under $1,800 – Eyes on US FOMC Meeting Minutes

Posted Tuesday, August 16, 2022 by
Skerdian Meta • 2 min read

The gold price has pared recent losses to about $1,780 as a lackluster session enabled sellers to consolidate bearish movements in Europe on Tuesday morning. Nonetheless, market concerns about the economic prospects in the United States, Europe, and China appear to keep commodities purchasers optimistic. Softer prints of US and Chinese data and lower Treasury rates reflect economic concerns, not to mention the Sino-American squabbles.

The German economic crisis was along the same lines. Europe is negotiating a nuclear agreement with Iran to combat the domestic energy issue. The geopolitical squabbles over China may be along the same lines. According to Xinhua, China has sanctioned several Taiwan separatists. Previously, the visit of many US members of Congress to Taiwan upset Beijing, resulting in harsh military maneuvers along the Taiwan border and increased geopolitical threats, supporting GOLD prices. .

It’s worth mentioning that, according to Reuters, German Economy Minister Robert Habeck stated on Monday that “Germany’s Russia-dependent energy paradigm has failed and will not return.”

XAU/USD

In other news, the US NY Empire State Manufacturing Index for August fell to -31.3 from 11.1 in July and 8.5 in market expectations. Furthermore, the August NAHB homebuilder confidence index in the United States plummeted to 49 from 55, its lowest level since the first months of 2020.

In contrast, China announced disappointing Retail Sales and Industrial Production numbers for July and a rate decrease from the People’s Bank of China (PBOC). However, market buzz that China’s actions are insufficient to restore market mood appears to exert more downward pressure on gold prices.

Against this environment, US 10-year Treasury rates break a two-day downtrend near 2.78% but remain sluggish. Furthermore, the S&P 500 Futures are down 0.10% intraday at the time of writing.

Looking ahead, today’s German ZEW Economic Sentiment data for August will be released ahead of the US Building Permits, Housing Starts, and Industrial Production figures for July, providing a fresh impetus.
Above all, the Fed Minutes will be critical, given the uncertainty over the US central bank’s future steps.

Gold (XAU/USD) Technical Outlook

Gold price encountered tremendous negative pressure yesterday to test the important support level of 1779.25, observing that the price remained stable above it, followed by obvious bullish signs currently through stochastic, hoping to inspire the market to restart positive trades first to target 1802.80.

As a result, our overall bullish outlook will remain valid, reminding you that it is critical to maintain above 1779.25 to attain the proposed goals. Today’s trading range is likely between 1770.00 support and 1800.00 resistance.

Today’s projected trend: bullish

 

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