Gold Under Pressure from USD and the Fed

68
The gold market is currently under pressure due to:
- Recent statements from the U.S. Federal Reserve (Fed).
- A stronger U.S. dollar, which reduces gold’s appeal.

Previously, gold had been supported by:
- A weaker dollar following Moody’s downgrade of the U.S. credit rating.
- However, increased interest in risk assets and hopes for peace between Russia and Ukraine have reduced demand for gold.

Key factors to watch going forward:
• Statements from the Fed
• Developments in trade negotiations

Possible scenario:
• The bearish trend remains dominant.
• A short-selling wave and a breakdown from the triangle pattern may occur.
• A further drop toward the 3150–3120 zone is possible.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.