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Gold Vulnerable as USD Strength Continues Ahead of FOMC Minutes
Confirmed
In Short: While the Moving Average Convergence Divergence (MACD) remains in positive territory with a reading of 3.35, hinting at modest bullish momentum, the Relative Strength Index (RSI) at 44.26 leans slightly lower, suggesting that rallies are vulnerable.
Gold prices are under pressure, trading near a two-month low, as the US dollar continues to strengthen, according to FXStreet.
The upcoming release of the Federal Open Market Committee (FOMC) meeting minutes is expected to provide insights into future interest rate hikes and policy metrics, which could further impact the USD and gold prices.
FXStreet analysts note that the market reaction to the FOMC minutes could be delayed since news outlets do not have access to the publication before its release.
The current economic environment, characterized by elevated US bond yields near multi-year highs, fuels concerns about energy-driven inflation, lending additional support to the USD and favoring bearish gold positions.
Despite China's central bank extending its gold-buying streak for the 23rd consecutive month, the gold price remains under pressure due to a bearish fundamental backdrop.
Technically, gold prices are holding below the 100-period Simple Moving Average (SMA) on the 4-hour chart and the 61.8% Fibonacci retracement, reinforcing the negative outlook.
While the Moving Average Convergence Divergence (MACD) remains in positive territory with a reading of 3.35, hinting at modest bullish momentum, the Relative Strength Index (RSI) at 44.26 leans slightly lower, suggesting that rallies are vulnerable.
FXStreet analysts also noted that while the odds of a December rate hike have not shortened significantly, they now expect a second hike later in the year.
Looking ahead, the outlook for 2027 remains uncertain, particularly due to the ongoing Middle East conflict and its impact on oil prices and inflation.
ScienceAlert reported on the extreme sport of freediving, highlighting the risks involved as divers hold their breath for extended periods, with the record held by Croatian freediver Vitomir Maričić at 29 minutes and 3 seconds.
What this adds
The FOMC minutes are expected to provide crucial information on future monetary policy, which could significantly influence gold and USD movements.
What's confirmed
- Gold prices are under pressure, trading near a two-month low, as the US dollar continues to strengthen, according to FXStreet.
- The upcoming release of the Federal Open Market Committee (FOMC) meeting minutes is expected to provide insights into future interest rate hikes and policy metrics, which could further impact the USD and gold prices.
- FXStreet analysts note that the market reaction to the FOMC minutes could be delayed since news outlets do not have access to the publication before its release.
- The current economic environment, characterized by elevated US bond yields near multi-year highs, fuels concerns about energy-driven inflation, lending additional support to the USD and favoring bearish gold positions.
- Despite China's central bank extending its gold-buying streak for the 23rd consecutive month, the gold price remains under pressure due to a bearish fundamental backdrop.
- Technically, gold prices are holding below the 100-period Simple Moving Average (SMA) on the 4-hour chart and the 61.8% Fibonacci retracement, reinforcing the negative outlook.
- While the Moving Average Convergence Divergence (MACD) remains in positive territory with a reading of 3.35, hinting at modest bullish momentum, the Relative Strength Index (RSI) at 44.26 leans slightly lower, suggesting that rallies are vulnerable.
- FXStreet analysts also noted that while the odds of a December rate hike have not shortened significantly, they now expect a second hike later in the year.
- Looking ahead, the outlook for 2027 remains uncertain, particularly due to the ongoing Middle East conflict and its impact on oil prices and inflation.
- ScienceAlert reported on the extreme sport of freediving, highlighting the risks involved as divers hold their breath for extended periods, with the record held by Croatian freediver Vitomir Maričić at 29 minutes and 3 seconds.
What's still developing
- Starved of the oxygen they need to produce energy, your neurons can start dying within minutes, rapidly leading to seizures, unconsciousness, and death in the most extreme cases.
- These are the freedivers, performing an extreme sport that involves holding one's breath for minutes at a time while diving into deep waters.