Global central bank interest rate hikes are putting pressure on gold futures.
Gold futures for the week of Friday, June 23, saw a volatile decline. Hawkish comments from Fed Chair Powell's testimony to Congress significantly weighed on gold prices. Further interest rate hikes by the Bank of England, the Swiss National Bank, and other central banks also put pressure on gold prices. Currently, the market remains somewhat divided on the Fed's subsequent policy direction. Data released Thursday by the U.S. Department of Labor (DOL) showed that initial jobless claims totaled 264,000 for the week ending June 17, the highest since the week ending October 30, 2021, and above market expectations of 260,000. Continuing jobless claims fell by 13,000 to 1.759 million for the week ending June 10, below market expectations of 1.782 million. Gold prices, after fluctuating at low levels on Friday, rose and stabilized around the $1910 level. Bears were unable to push prices lower, leading to a gradual increase, reaching a high of $1938 per ounce before encountering resistance and retracting. From a daily technical perspective, the Bollinger Bands are currently showing a reverse opening, and the moving averages are arranged in a bearish pattern, indicating a weak downward trend in the daily chart. In the short term, we need to pay close attention to the resistance levels at the MA10 moving average, which corresponds to $1938 and $1940. According to the Fibonacci retracement line of the daily chart, the next important support level is around $1917-$1910, corresponding to the 0.618 position!
Time:
2023-06-26 07:58
Gold futures experienced a volatile decline during the week of Friday, June 23. Hawkish comments from Federal Reserve Chairman Powell's testimony to Congress significantly impacted gold prices. Gold prices , along with consecutive interest rate hikes by the Bank of England and the Swiss National Bank, among others, put further pressure on gold prices. Currently, the market remains somewhat divided on the future direction of the Federal Reserve's policy.
Data released Thursday by the U.S. Department of Labor (DOL) showed that initial jobless claims totaled 264,000 for the week ending June 17, the highest since the week ending October 30, 2021, and exceeding market expectations of 260,000. Continuing jobless claims decreased by 13,000 to 1.759 million for the week ending June 10, below market expectations of 1.782 million.
After a period of low-level volatility, gold prices rose on Friday, stabilizing and consolidating around the $1910 level. Bears were unable to push prices lower, leading to a gradual increase, reaching a high of $1938 per ounce before encountering resistance and retracting. From a daily technical perspective, the Bollinger Bands are currently exhibiting a reverse opening, and the moving averages are arranged in a bearish pattern, indicating a weak downward trend in the daily chart. In the short term, we need to focus on the resistance levels at 1938 and 1940, corresponding to the MA10 moving average. According to the Fibonacci retracement lines on the daily chart, the next significant support level is around 1917-1910, corresponding to the 0.618 level!
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Although gold prices rose this week, market volatility has clearly increased. While the US-UK agreement is symbolic, its content is limited and insufficient to alleviate concerns about a global economic slowdown. Therefore, gold prices will continue to fluctuate between safe havens and policy signals, closely monitoring the Federal Reserve's interest rate expectations and global trade sentiment.