Gold Prices Continue to Rise Despite Federal Reserve Rate Hike
Expectations of interest rate hike are lower than before by the Fed weighed on the dollar, pushing the dollar to a new high after a resumption in 2022 and it’s likely to fall further in the coming months. US Treasury yields plummet to a three-week low after just minutes. However, the Fed report also showed that policymakers are focusing on lowering the inflation and are set to keep US interest rates higher for the long term. Such a scenario is likely to set the rise in the metal market.
According to the technical analysis from 1 to 4-hour chart the uptrend continues, despite the high gold price, the level of gains continues. Today’s gold price is between 1847.00 to 1865.00 dollars per ounce.
According to Federal Reserve, the US inflation rate has not yet fallen to the Fed’s target, and gold prices will continue to rise on the February 1, 2023 rate hike. Therefore, the percentage of buys is still high.
I recommend investors wait to buy between 1840.00 or 1847.00 dollars per ounce and set a profit function at $1863.00, and set a stop-loss at $ 1837.00 per ounce.