For the second day in a row, the price of gold is exposed to sell trades with losses at the support level of $1842 per ounce and rebounding from the resistance level of $1870 per ounce. We had recommended our valued clients to sell gold from the resistance level of $1877 per ounce. Gold prices fell to snap a four-day winning streak as the U.S. dollar rebounded from recent losses ahead of the release of minutes of the Federal Reserve’s latest policy meeting.
Yesterday. U.S. stocks closed on Wall Street broadly higher after news of the Federal Reserve’s recent meeting signaled that the U.S. central bank intended to move “quickly” to raise interest rates again. US interest at more neutral levels in its battle to control inflation.
The S&P 500 index rose 0.9%, while the Dow Jones Industrial Average rose 0.6%. The Nasdaq rose 1.5%. The indices have rebounded after being in the red early on, on course for weekly gains, despite more bullish and bearish trading this week.
Minutes from the Fed’s meeting earlier this month show that most officials agreed that half-point increases in the Fed’s short-term benchmark rate would be “probably appropriate” at the next two Fed meetings. the central bank, in June and July. Such an increase would be twice the usual height. The U.S. central bank has started raising interest rates in a bid to stem the highest inflation in four decades, so traders are keen to get a fresh look at the thinking of Fed officials. However, the Fed’s meeting minutes revealed no major surprises.
Commerce Department data showed that new orders for U.S. durable goods rose less than expected in April. The Commerce Department said durable goods orders rose 0.4% in April, following a downwardly revised 0.6% rise in March. Economists had expected durable goods orders to rise 0.6% from the 1.1% jump recorded the previous month.
Excluding transportation equipment orders, durable goods orders rose 0.3% in April after rising 1.1% in March. Previous transfer orders were also expected to rise by 0.6%.
According to the technical analysis of gold: I still see the price of gold buying at all bearish levels, and the $1837 and $1820 support levels will be the most important to do so when trading this week. As I mentioned earlier, the tendency of global central banks to raise interest rates to contain gold’s negative inflation, but it has other strong factors represented in the war-driven global geopolitical tensions Russian-Ukrainian and the slowdown of the Chinese economy due to a new focus of the epidemic.
On the other hand, the most important stations of bullish control on the gold trend are the resistance levels of 1877 and 1885, and the psychological high of $1900, respectively. The price of gold will be affected today by the level of the US dollar in response to the minutes of the Federal Reserve meeting and the announcement of the growth rate of the US economy, as well as the measure in which investors take risks or not.