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

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