Gold prices approach the critical level of 2366! The Fed's rate cut signal triggers a new trend in the gold market
Amidst the fluctuations in global financial markets, gold, as a traditional safe-haven asset, has always seen its price movements closely watched by investors. Recently, the gold market has shown new trends, with prices exhibiting upward signs after a period of consolidation.
Time:
2024-06-21 17:06
Huitong Finance APP News - Amidst the volatility of the global financial market, gold, as a traditional safe-haven asset, has always been closely watched by investors. Recently, the gold market has shown new trends, with prices showing signs of upward movement after a period of consolidation.
On Friday (June 21), early in the European market, Beijing time, the spot gold price maintained a firm trend, currently around $2364 per ounce. This price increase is related to the Federal Reserve officials' loosening of their stance on interest rate cuts. Austan Goolsbee, a hawkish Federal Reserve official, stated that if inflation continues to cool, the central bank could cut interest rates. This statement has brought positive signals to the gold market.
Technical Analysis Reveals Upward Potential
From a technical analysis perspective, the gold price has broken through the key 50-day moving average of $2343.32, which is seen as a potential trigger for an upward breakout. Analyst James Hyerczyk points out that if the gold price can continue to break through this level, the volatility top of $2387.79 will return to people's attention. However, if the gold price fails to break through $2343.32, it may indicate strong bearish forces or resistance, which could lead to further range trading.
In the latest analysis, Dhwani Mehta, an analyst from a well-known institution, pointed out that the daily chart of gold prices shows that the price has broken through a month-long symmetrical triangle, and the RSI remains above 50, suggesting that there is still more upside potential. On the upside, the gold price needs to break through the two-week high of $2366 per ounce to further rise to the next resistance level, which is the high of $2388 per ounce on June 7. The last line of defense for gold bears may be the $2400 per ounce level.
However, the market is not without risk. If the gold price falls below the key support level of $2340.10 per ounce, this will push the gold price to become bearish and may target the next correction level of $2272.06 per ounce. Therefore, while investors are optimistic, they should also remain cautious and closely monitor the upcoming weekly US jobless claims data and the initial value of the Purchasing Managers' Index, which will have a significant impact on the future direction of the Federal Reserve's monetary policy.
Indirect Impact of Geopolitical Tensions
In addition, geopolitical tensions, especially the dynamics in the Middle East, have also brought uncertainty to the gold market. The Bank of England's inflation rate has reached its 2% target for the first time in nearly three years, but the possibility of an immediate interest rate cut remains low. These factors may have an indirect impact on gold prices.
In summary, the short-term outlook for the gold market remains bullish, but investors should closely monitor market dynamics and upcoming economic data to make reasonable investment decisions. At the same time, considering the volatility of the market, any prediction about gold prices should be cautious, avoiding overly certain judgments.
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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.