Gold prices (XAU/USD) Price Analysis and Graphics
- Gold short-term price action remains compressed.
- President of the federal reserve, and Jerome Powell’s speech, may lead to the next step.
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Gold Waiting for Fed Chairman, and secretary Powell’s Speech
The President of the Federal Reserve, and Jerome Powell is speaking at a virtual event today at 13:00 UTC, and his words will be closely scrutinized by the market for all indicators of the continuation of the fiscal policy to help re-boot the ailing u.s. economy. In recent days, a number of FOMC members have downplayed the prospect of negative interest rates, but stressed that more must be done to help the economy. A tool that has increased the airtime is a yield curve for the control and the President of the Federal reserve, and may very well discuss today. “If the Fed is committed to maintaining medium-and long-term interest rates are capped for a defined period of time, the US dollar could well struggle to make more sense upside down.
The price of gold continues to be driven by risk sentiment and the value of the U.S. dollar, and any sell-off in the dollar on the back of Powell, the commentary may was a boost for the precious metal back towards the recent highs. In addition, the market is currently in a risk-off phase that the united states-China relations will continue to deteriorate, and all-new escalade to see safe havens such as gold well supported.
The daily gold chart shows the precious metal trading either side of the downtrend that began in mid-April. This trend line was broken last week, but the gold did not open above the trend of the resistance until today. There are also a series of more downs over the course of the last month, which suggests that negative sentiment continues to build, pointing to a break higher. Any sell-off-will-find-face (a cluster of recent lows, all the way up to the $1,680/oz. that should hold in the short term. If gold is treated here, because of the supportive atmosphere of the trend line will be broken and a close and open below, this trend can be open to further losses. If the gold receives another rate is $1,724/oz. this is probably the first target in advance, or $1,740/oz. the 14 April high, in the amount of 1,747/oz.
Gold’s Daily Price Chart (December 2019, 13 May 2020)
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