Account

New to ADSS? Open an
account now to get started.

OR

Already have an account?

Add funds to your ADSS account

Account

New to ADSS? Open an
account now to get started.

Add funds to your ADSS account

Trends & Analysis
News

Week Ahead Preview: 22nd of April

News

P&G shares rise despite Q3 sales miss

News

Gold continues to shine amid geopolitical worries

News

Crude oil dips for 3rd session after supply data

News

Is there an AI upside for AMD?

News

GBP/USD recovers following wage report

Trends & Analysis
News

Week Ahead Preview: 22nd of April

News

P&G shares rise despite Q3 sales miss

News

Gold continues to shine amid geopolitical worries

News

Crude oil dips for 3rd session after supply data

News

Is there an AI upside for AMD?

News

GBP/USD recovers following wage report

Asset Watch

Gold Price Await Key Data Release This Week

 

Tuesday, July 04, 2023

Gold Price – Chart and Analysis

• Markets to keep or pause pricing in further US rate hikes
• Gold price Bearish momentum loses steam

The Gold price retreated last week as many investors believe that the Fed would resume its rate hike cycle in the upcoming meeting of July. Markets have already priced in a 25-basis point rate hike based on the Fed chair statements about high inflation rates in the US and the need to take further steps to bringing the inflation numbers back to their target at 2%.

Investors will be waiting for the FOMC minutes this week to find out more about the reasons that made the committee members think that they may hike rate by 50 basis points by the end of 2023. Additionally, markets await the US jobs report on Friday and expect the US economy to add 225K of jobs in June. Therefore, any lower-than-expected data means weaker inflationary pressures and lower chances of hiking rates above 5.50 % in 2023 (a negative scenario for the USD price and a positive one for the gold price). Whereas any higher-than-expected data could maintain high inflation levels and increase the odds for the Fed to hike rates towards 5.75% in 2023 (a negative scenario for the gold price and a positive one for the US dollar price).

GBP/USD Daily Price Chart

 

Chart source: TradingView

In mid-June the yellow metal price resumed its downward trend as expected creating lower highs with lower lows. Last week, the price printed a multi month low at 1893/oz then rallied and closed on a Doji pattern (a reversal pattern that indicates trader’s reluctance to keep pushing in the same direction).

Currently, the gold price moves in the trading zone between 1911-1949 and it could correct higher if the rate breaks above the bearish trendline originating from the June 2 high at 1983. A daily close above the high end of the mentioned above trading zone could encourage traders to rally the price towards 1974 however, the resistance level located at 1960 should be considered.

On the other hand, a daily close below the low end of the trading zone may entice bears to retake the initiative and press towards 1872. That said, the support level residing at 1890 should be monitored.


Site by Pink Green
© ADSS 2024


Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.