TD Securities strategists made statements about the outlook for the gold price. The data shows that the Fed has yet to support hopes for a break from rate hikes. So, what should we expect for the yellow metal at the stage we have come to? Let’s look at the details.
Expectation in gold price
Recently, the capital has continued to move away from the yellow metal. Accordingly, analysts still state that investors are taking short positions, as opposed to total non-trading trading activity. There are growing expectations that cuts will deepen next year. Accordingly, this situation will soon begin to support the rise in gold prices. On the other hand, in recent developments, there are differences of opinion among the investment community regarding the monetary policy in June. Accordingly, the gold price is hovering in a narrow range due to disagreements. US banks have been reluctant to issue loans to households and firms to maintain their asset quality. Also, the gold price is consolidating at the 50% Fibonacci retracement level of $1,960.00.
Gold price hovers around $1,960.00 in the early London session. The precious metal is moving back and forth as the investment community disagrees over the Federal Reserve’s (Fed) interest rate decision at its June monetary policy meeting. S&P500 futures gave back nominal gains in Asia. This indicated the decline in the risk appetite of market participants. US Dollar Index (DXY) drops as low as 103.80. Then it witnessed an intervention in its downward momentum. There is a general contraction in US economic activity due to the Fed’s aggressively tight monetary policy and further additions to the lending procedure used by US regional banks.
Yellow metal technical analysis
There are mixed views on the Fed’s June policy. Accordingly, this situation prevents the gold price from a significant movement. The steady rise of new hires in the US labor market supports the need to raise interest rates even further. Continuously shrinking factory activity and below-normal service activity indicate that the Fed should pause policy tightening once and observe the impact of yet-to-be-raised interest rates.
cryptocoin.com On an hourly scale, gold price is consolidating in a narrow range of $1,957-1,964 on an hourly scale. The precious metal turned sideways around the 50% Fibonacci retracement at $1,960. The 50-day Exponential Moving Average (EMA) at $1,959.38 is providing support for the Gold bulls. Meanwhile, the Relative Strength Index (RSI) oscillates in the 40.00-60.00 range. Accordingly, this indicates that investors are waiting for a new trigger for a decisive move.
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