Gold Near $1,715 – What Could Stimulate Growth? – FX leaders – Rayrice Forex News

Gold Near $1,715 – What Could Stimulate Growth? – FX leaders

The gold market is showing a corrective decline, with bulls retreating from an intraday high near $1,720 in Europe Tuesday morning. Optimism about the early Asian session As technical challenges and worries recently tested metal buyers, a weak US dollar index (DXY) and promises of further stimulus from Europe, China and the UK, gold bulls appear to be keeping their optimism.

In the first Asian session, market sentiment strengthened as the full market’s recovery increased expectations of further measures to combat the oil crisis. However, UK Prime Minister Liz Truss unveiled a £130bn energy plan and cut the People’s Bank of China’s (PBOC) reserve requirement ratio (RRR). In addition, German/Eurozone politicians are fighting a recession with strong initiatives to protect energy companies and stockpile winter supplies.

Among these bets, US 10-year Treasury yields rose 2.5 basis points (bps) to 3.21%, while S&P 500 futures extended their weekly start of support at 3,943, up 0.50% since press time. Additionally, the market consolidation allowed the DXY to drop from its 20-year high to 109.37 before recovering to 109.62.


However, CME’s FedWatch Tool forecasts a 60% chance of a 0.75% rate hike in September, down from 75% last week. The decline in hawkish views of the Fed may be related to a mixed August US jobs report.

It should be emphasized that the reaction of traders from the United States and Canada is closely monitored for clear signals when trading. Gold. Geopolitical headlines involving China, Russia and the United States will also be critical. Additionally, the ISM services PMI, which was previously forecast at 55.5 and 56.7, may provide further direction for gold bulls for August.

Technical view of gold

As the EMA50 has hit a barrier to increase strength, the price of gold has reached our expected target of 1726.60 and encountered strong resistance. At the same time, the stochastic provides positive signals against the negative EMA 50.

For this reason, we prefer to be neutral until we receive a clear signal for the next trend, pointing out that the break of 1726.60 will allow the price to continue the main bearish trend and lead to negative targets from 1755.70. On the contrary, the break of 1709.00 will allow the price to continue the main bearish trend and lead to negative targets from 1780.00. Today’s trading range may be between 1700.00 support and 1740.00 resistance.

Today’s featured trend: Choppy

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