Gold Price Forecast: XAU/USD soars as Fed Powell puts the breaks on 75bps hike sentiment By ross_burland Fed Gold DollarIndex CentralBanks YieldCurve
Fed futures were initially pricing in a higher chance of a 50 basis point hike at the June meeting before Powell spoke, but the US dollar has come under strong selling pressure during the press conference. Powell stated that 75bps hikes were not on the table and that it will be 50bps at the next two meetings if the members of the board see what they expect to see.US dollar index
The Committee intends to reduce the Federal Reserve's securities holdings over time in a predictable manner primarily by adjusting the amounts reinvested of principal payments received from securities held in the System Open Market Account . Beginning on June 1, principal payments from securities held in the SOMA will be reinvested to the extent that they exceed monthly caps.
For agency debt and agency mortgage-backed securities, the cap will initially be set at $17.5 billion per month and after three months will increase to $35 billion per month.Gold has rallied into the daily resistance from an area of demand from where the price last reacted in a significant fashion leading to what would be fresh cycle highs. However, the bulls need to get above $1,900 to mark a more convincing bullish case for higher on the charts.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Gold Price Forecast: XAU/USD extends recovery toward $1880Gold printed a fresh daily high during the American session at $1878.20 on Tuesday boosted by a recovery in Treasuries and a weaker US dollar. The met
Read more »
Gold Price Forecast: XAUUSD to remain resilient this year, 2022 forecast is $1,910 – CitibankEconomists at Citibank expect gold prices to soften mildly from March's all-time highs. They forecast XAUUSD at $1,910 this year. Macro and micro fact
Read more »
Gold Price Forecast: XAU/USD Falls to Fresh Lows Ahead of FOMCGold prices fall to new two-month-low, as US rates continue to rally & the greenback hits new highs—both bearish factors for gold. Given the Fed’s expected plans to tackle raging inflation, gold may see more trouble ahead.
Read more »
Gold Price Forecast: XAUUSD bugs are offloading in a vacuum ahead of FOMC meeting – TDSGold Price has slumped to the $1,850 level. Strategists at TD Securities note that the demand for the yellow metal is waning ahead of Wednesday’s Fede
Read more »
Gold Forecast: Markets Fall to Reach 200-Day EMAGold markets got crushed on Monday as we continue to see the US dollar act like a wrecking ball against everything it touches.
Read more »
Gold Forecast: Respecting the 200-Day EMAGold Trading: Keep your position size relatively small, and only add to your position when you get confirmation of your trade. Forex Gold
Read more »