FXTM information and reviews
FXTM
95%
OctaFX information and reviews
OctaFX
94%
XM information and reviews
XM
93%
FXCC information and reviews
FXCC
92%
Libertex information and reviews
Libertex
91%
FxPro information and reviews
FxPro
90%

Gold Shaky Ahead Of Fed Meeting


27 January 2022 Written by Lukman Otunuga  Senior Research Analyst at FXTM Lukman Otunuga

Gold bulls went into hiding on Wednesday as investors awaited the outcome of the Federal Reserve meeting this evening. It has been a choppy week for the commodity so far with price down almost 0.2% since Monday. When looking at gold, it remains the same old story with bulls and bears engaged in a tough tug of war. As highlighted yesterday, there is no doubt that the next few days will be eventful with its near-term outlook impacted by the looming Fed meeting.

Markets widely expect the Fed to leave interest rates unchanged in January. However, investors will closely scrutinise the meeting for fresh insight into the Fed’s aggressive monetary policy path for 2022. Should Fed hawks dominate the scene, this could hit buying sentiment towards gold with prices sinking back towards $1810 and $1800 in the short term. A strong daily close below the psychological $1800 level could open the doors towards$1786.

If the Fed shows any hesitancy in future rate hikes, this could rekindle appetite for zero-yielding gold, pushing prices back towards $1845 and $1870.

Looking beyond today, the road ahead for gold remains rocky and filled with many obstacles. 2022 is already shaping up to be a rough and uncertain year for the metal thanks to Fed hike expectations and a stronger dollar. If Treasury yields continue to rise, this may compound to gold’s woes, paving the way for steeper declines. It may be wise to keep a close eye on the weekly timeframe. Prices still remain in a very wide range while the MACD is flat. Bulls look slightly exhuasted with a bearish pin bar in the making. Should prices end the week below $1831, this could signal a decline back towards the $1786 level and $1750, respectively.

#source

Share:


Related

Forex and Cryptocurrencies Forecast for September 26-30, 2022
Forex and Cryptocurrencies Forecast for September 26-30, 2022

Last week, all the attention of the markets was focused on the FOMC meeting of the US Federal Reserve, which took place on September 21. The probability of another rate hike by 75 basis points (bp)...

26 Sep 2022

Trading the SPDR S&P 500 ETF Trust
Trading the SPDR S&P 500 ETF Trust

The Standard & Poor’s (S&P) 500 Index measures the market capitalisation of the top 500 US largest corporations. Many traders and investors use the S&P 500 Index as a benchmark...

23 Sep 2022

Gold pauses as traders await Fed decision
Gold pauses as traders await Fed decision

The anticlimactic performance of gold continues as the prospect of aggressive rate hikes by central banks around the world amid heightened inflationary pressures...

21 Sep 2022

Developing a forex trading plan: All you need to know
Developing a forex trading plan: All you need to know

All forex traders have different backgrounds, market views, risk appetite, thought processes and expectations. Therefore, traders should not just blindly follow what other traders do...

20 Sep 2022

NordFX: Forex and Cryptocurrencies Forecast for September 19-23, 2022
NordFX: Forex and Cryptocurrencies Forecast for September 19-23, 2022

The World Bank said last week that risks of a recession in 2023 are growing amid simultaneous tightening of monetary policy by the world's leading Central banks and the energy crisis in Europe...

19 Sep 2022

Gold gains traction on the back of weaker dollar
Gold gains traction on the back of weaker dollar

The precious’ recent rally from its near year-to-date lows could be attributed to the broader dollar weakness observed in the past week, even though it remains elevated near its 20-year highs...

14 Sep 2022


Editors' Picks

HFM information and reviews
HFM
89%
IronFX information and reviews
IronFX
88%
FXCM information and reviews
FXCM
87%
NordFX information and reviews
NordFX
85%
Vantage information and reviews
Vantage
84%
FP Markets information and reviews
FP Markets
81%

© 2006-2022 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.