Gold price continues to decline as Federal Reserve keeps an eye on the potential of inflation
Despite the fact that the central banks are still concentrating on the looming inflation danger, gold prices are still under pressure and are largely disregarding the minutes from the Federal Reserve’s July monetary policy meeting. According to the minutes, the committee still considers inflation to be a serious risk to the economy.
Some market analysts believe that the Federal Reserve’s remarks that interest rates would stay higher for longer might be detrimental to the gold market. Since investors anticipate that the U.S. central bank will hold the line on interest rates by mid-2023, many analysts have noticed that gold has managed to hold up well. Reported by Kitco News.
Between the conclusion of their July FOMC meeting and the publication of the statement, the nation released promising Consumer Price Index data, showing that it increased by 8.6% YoY in July, slowing from the previous 9.1% increase. Reported by Fxstreet.
Technically speaking, today’s low for October gold futures prices. The near-term technical edge is overall with the bears on gold futures. The next upward price target for bulls is to achieve a close above the strong resistance level of the August high of $1814. The next short-term downside price target for bears is to drive futures prices below strong technical resistance at $1700.
Investors should be noted that gold chart is in down trend line and in range from $1759 to $1801. First resistance is seen at today’s high of $1786 and then at 1800. First support is seen at the August low of $1759 and then at $1750. Investment is risky, so investors should set stop-loss function to protect their capital.
Analyzed by: Ms. Teang Riya Independent Analyzed
PP Link Securities Co., Ltd. endeavors to ensure the accuracy and completeness of this research report. However, as the market is subject to change, the Company and our subsidiaries do not guarantee its completeness and accuracy, and the information is for reference only. Any person shall not regard such information as PP Link Securities Co., Ltd. on leveraged foreign exchange, precious metals, stocks, and other financial products to provide real quotes, suggestions, solicitation, and inducement of investment. Guests should be aware of the risks involved in the investment, the volatility of the investment market, and the risk of loss can be very big, guests must carefully consider their own financial situation and investment purposes, to decide the direction of investment and the kind of investment products that are suitable for their owns.