Gold: downside contained so far
After a brief jump to nearly 14-month highs around $1,348, gold prices started to correct lower as the bullion attracted some profit-taking at interesting levels. On Tuesday, the precious metal is challenging the $1,324 barrier, a break of which could open the way towards the $1,320 support area.
The recent aggressive rally in gold prices was driven by rising expectations of a rate hike by the Federal Reserve. By the way, some market participants are pricing in monetary policy easing during the meeting scheduled for next week. Such expectations are looking too dovish and this is a risk for the bullion as should the central bank refrain from cutting rates next Wednesday, the greenback may rise decently, while the yellow metal will further lose ground in this scenario.
In the short term, meanwhile, the downside looks fairly contained due to the lingering uncertainty over the US-China trade dispute and some fears of slowing global growth. Technically, gold needs to hold above the $1,300 threshold in order to avoid a more aggressive bearish correction.
The recent aggressive rally in gold prices was driven by rising expectations of a rate hike by the Federal Reserve. By the way, some market participants are pricing in monetary policy easing during the meeting scheduled for next week. Such expectations are looking too dovish and this is a risk for the bullion as should the central bank refrain from cutting rates next Wednesday, the greenback may rise decently, while the yellow metal will further lose ground in this scenario.
In the short term, meanwhile, the downside looks fairly contained due to the lingering uncertainty over the US-China trade dispute and some fears of slowing global growth. Technically, gold needs to hold above the $1,300 threshold in order to avoid a more aggressive bearish correction.
면책사항
이 정보와 게시물은 TradingView에서 제공하거나 보증하는 금융, 투자, 거래 또는 기타 유형의 조언이나 권고 사항을 의미하거나 구성하지 않습니다. 자세한 내용은 이용 약관을 참고하세요.