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 Outlook: G7 updates and economic data in focus


29 June 2022

During the previous week the Gold market performed its most quiet session for a considerable time looking back, not allowing for any fireworks to prevail. Despite the price action being rather muted, a number of important fundamental and economic developments have emerged recently possibly adding some spice to the scene. Through this report we aim to create awareness among Gold traders overviewing subjects and events that could create movements in the next days. As a closure, our Gold technical analysis will bring forth support and resistance levels that stand out from our perspective.  

A remarkable day from the past week, which in our view is worth mentioning was the 23rd of June. On that day the market anticipated two significant market moving events that we included in our previous report. First the Preliminary US PMI data for June which ended up being very pessimistic as figures dropped notably highlighting worries of an economic slowdown and second Fed Chairman Jerome Powell’s speech before Congress.

The catch here is that despite the negative PMI data, the USD Index ended the day higher while Gold prices were on the decline. In our view, Gold could have been used as a hedge for economic uncertainty but instead traders sold positions as Jerome Powell’s comments may have been more hawkish including statements like “The American economy is very strong and well positioned to handle tighter monetary policy”. The hawkish remarks may have provided support for the greenback, which tends to counter Gold, with the two instruments having a negative correlation. This may also be evidence that traders may be gravitating towards what the Fed is willing to do looking forward, compared to what the PMI data is saying for the recent months. 

In terms of financial releases coming up in the next days, we note a few that could act as motivation for Gold traders and create volatility for Bullion. On the 29th of June Fed Chairman Jerome Powell, ECB President Christine Lagarde, BOE Governor Andrew Bailey speak at the ECB Forum on Central Banking.

On the 30th of June we get the US Consumption Adjusted and Core PCE Price Index rates for May along with the weekly initial jobless claims figure.  We highlight the PCE Index rate as it remains among the metrics observed by the FED, possibly becoming more interesting to traders. On the 1st of July we get the Final Manufacturing PMI figure as well as the ISM Manufacturing PMI both for June.

Gold is currently trading between the (R1) 1840 resistance and the (S1) 1805 support levels which makes them both the most probable targets in a buying or selling strategy accordingly. Yet since the 9th of May Gold’s price action has moved in a broader sideways motion between the (R2) 1870 resistance and the (S1) 1805 support making these levels the highest and the lowest Gold has tested since the noted period.  Outside this range we also note the (S2) 1785 barrier which could be engaged in an extensive bearish trend and could form a new 2022 low for the precious metal. Overall, we tend to maintain our sideways bias for Gold’s current trend as our personal view, while the RSI indicator below our chart seems to be cruising across the 44 level implying some selling may be in play for now. 

#source

Share:


Related

The Euro rebounded from the low
The Euro rebounded from the low

After updating its multi-year lows again, the major currency pair rebounded. The current quote for the instrument is 0.9656. Last night, the local interest in risks improved a bit, helping the asset to successfully correct...

29 Sep 2022

Gold Shows Signs of Life, But Heads Towards Another Losing Month
Gold Shows Signs of Life, But Heads Towards Another Losing Month

The precious metal is largely considered as a hedge to inflation, but it has not confirmed this status during the current year. It did kick it off with a rally, but as the Fed begun hiking rates back...

28 Sep 2022

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


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.