World gold price this morning continued its downward trend with spot gold down 3.7 USD to 1,933.1 USD/ounce. Gold futures in August last traded at $1,944.9 per ounce, down $3.3 from dawn the day before.
Gold prices in midweek trading pushed to a three-month low as Federal Reserve Chairman Jerome Powell maintained a hawkish tone during his congressional testimony. Specifically, Mr. Powell emphasized that it would be necessary to raise interest rates even higher to achieve the goal of reducing inflation. This pushed Treasury yields higher and put pressure on the precious metal.
Optimism about gold has cooled, although the factors driving demand for the precious metal remain. However, the precious metal has been in this trading zone for too long, which usually implies a drop. Shiels said the $1,940 to $1,950 range coincides with the 100-day moving average.
There are still three main drivers supporting gold's recovery, including aggressive central bank buying, strong physical demand, and retail coin and bullion purchases.
However, the warning has some signs of weakness that could push the sell-off scale.
XAUUSD SELL LIMIT 1940 -1942
✅ TP1: 1935
✅ TP2: 1928
✅ TP3: 1922
🛑 SL: 1950
Gold prices in midweek trading pushed to a three-month low as Federal Reserve Chairman Jerome Powell maintained a hawkish tone during his congressional testimony. Specifically, Mr. Powell emphasized that it would be necessary to raise interest rates even higher to achieve the goal of reducing inflation. This pushed Treasury yields higher and put pressure on the precious metal.
Optimism about gold has cooled, although the factors driving demand for the precious metal remain. However, the precious metal has been in this trading zone for too long, which usually implies a drop. Shiels said the $1,940 to $1,950 range coincides with the 100-day moving average.
There are still three main drivers supporting gold's recovery, including aggressive central bank buying, strong physical demand, and retail coin and bullion purchases.
However, the warning has some signs of weakness that could push the sell-off scale.
XAUUSD SELL LIMIT 1940 -1942
✅ TP1: 1935
✅ TP2: 1928
✅ TP3: 1922
🛑 SL: 1950
