Gold Prices Are Skyrocketing As The Fed Prepares To Loosen Monetary Policy - Forex News by FX Leaders

Gold Prices Are Skyrocketing As The Fed Prepares To Loosen Monetary Policy

Posted Monday, January 16, 2023 by
Arslan Butt • 1 min read
Earlier on Monday in the Asian session, GOLD prices approached an important resistance level of $1,920.00 before stagnating in a sideways pattern. After breaking through the round-level resistance of $1,900 for the first time in eight months, the precious metal saw significant buying interest. In addition, a drop in the US Dollar Index (DXY) aided the Gold price increase.

The risk profile remains positive, with the S&P500 posting a four-day winning run as the Federal Reserve (Fed) prepares to slow its current policy tightening pace following a solid decrease in December’s inflation data. Despite the risk appetite theme, the return on US Treasury bonds remains steady, rising to 3.50%. Despite an increase in US consumer confidence data on Friday, the US Dollar Index stayed below 101.80.
Consumer Confidence was announced by the University of Michigan at 64.6, exceeding estimates of 60.5. The street is aware that retail demand has slowed; so, the catalyst that has encouraged consumers is decreased inflation, driven by lower gasoline prices.

Wells Fargo analysts believe that the respite in inflation and wage growth is raising moods, but they warn that the still-sour buying conditions signal that the good sentiments in this report may not transfer into a spending spree.

XAU/USD Technical Outlook

 GOLD price shows more positive trades to break through 1,900 and confirm the continuation of the bullish trend dominance in the coming sessions, paving the way for a move towards 1,928.60 and 1,950 as the next positive station, with more gains expected for the rest of the day conditioned by price stability above 1882.

Today’s trading range is likely to be between 1,900 support and 1,950 resistance.

Today’s projected trend: bullish

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
Comments
0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments