EUR/USD 1.16042
-0.050%
Gold 5181.63
-0.197%
Oil 84.645
-0.695%
USD/JPY 158.313
0.174%
GBP/USD 1.34420
0.186%
GBP/JPY 212.810
0.406%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
German Economy Minister: The current oil market is overly sensitive and mainly driven by speculation. Therefore, relevant measures will have a restraining effect on oil prices.On March 11, Carsten Brzeski of ING Bank stated that the Middle East wars are threatening what the European Central Bank (ECB) previously called a "good position." With energy prices soaring, any discussion of interest rate cuts is no longer under consideration. He noted that the ECBs judgment might be influenced by its experience in 2022 when it misjudged the energy price shock as temporary. However, Brzeski pointed out that the current situation is clearly different. "At this stage, the risk of a wage-price spiral appears small." Nevertheless, if a "protracted war" scenario occurs, the ECB may be forced to take action, pushing for one or two rate hikes. ING expects the ECB to not adjust interest rates at its March 19 meeting and also anticipates no further mention of a "good position." Instead, the central bank is likely to adopt a more hawkish tone to curb inflation expectations and demonstrate preparedness to raise rates if necessary.German Economy Minister: The United States and Japan will be the largest contributors to the International Energy Agencys release of strategic petroleum reserves.German Economy Minister: The International Energy Agency plans to release the largest amount of oil reserves in history.German Economy Minister: Unable to provide a specific timetable for releasing oil reserves and limiting gasoline price increases.

After a corrective move, the gold price should find support around $1,650, and talk of the US gross domestic product (GDP) is making the market excited

Alina Haynes

Sep 29, 2022 11:56

 134.png

 

After a massive upswing, the gold price (XAU/USD) is correcting in a healthy way during the Tokyo trading session. As the downward bias is not supported by momentum, the precious metal should attract strong buying interest near the $1,650.00 support level. Thus, after the correction ends, the precious metal will continue climbing.

 

Gold prices have dropped slightly since the US dollar index has shown signs of weakness (DXY). The DXY fell after it was unable to maintain a price above the key resistance level of 144.50. To sum up, the DXY appears to be nearing its peak, which coincides with the Federal Reserve's target of 4.6% for the overnight rate of interest (Fed).

 

After analyzing the Fed's current interest rate hike velocity, it is important to remember that the Fed's peak interest rate is not far from the present interest rate of 3.-3.325%. Until the Fed detects a prolonged softening in price pressures, the terminal rate is likely to remain at 4.6% for a while longer.

 

The US Gross Domestic Product (GDP) figures will be closely monitored by investors on Thursday. According to the early forecasts, the annualized GDP in the United States will continue its downward trend by 0.6% in the third quarter.

 

Gold is falling on an hourly chart, and it is getting close to the horizontal support at $1,649.83, which was set from Monday's high. Since the price of gold is falling steadily, it is likely to take advantage of the horizontal support described above. A reversal of polarity will be indicated, and the shiny metal will start to act more impulsively.

 

Short-term buyers have been able to keep gold prices above the 50-period Exponential Moving Average (EMA) at $1,641.58. Although gold has fallen below the 200-day exponential moving average (EMA) at $1,655.00, it is likely to regain that level in the near future.

 

In the meantime, the Relative Strength Index (RSI) (14) is trending upwards within a bullish range of 60.00-80.00, suggesting further gains. The momentum oscillator may also find support near 60.00.


Suggestion