On May 4, the US Federal Reserve revealed the federal funds rate for the next two months. Even though a 50 basis points hike was widely expected, the future is not so clear. Let’s figure it out bit by bit!
Gold Loses the Chanсe to Survive!
Information is not investment advice
What will happen?
The Bureau of Labor Statistics will post June’s US CPI data on July 13th. It seems like markets expect to see high numbers, as the US dollar index (DXY) is flying to 107.00 while risk assets keep being pressed.
Also, investors keep in mind that the Federal Reserve might increase the key rate by50 basis points at the end of July, sending it to 2.25%.
What to expect?
An upcoming key rate increase combined with the oil market prices dump will cool the inflation down. Investors, who usually buy gold on expectations of increasing inflation and sell it at the opposite moment, have been getting rid of the yellow metal since March 2022. There is no doubt that they will keep doing that, freeing up capital to buy riskier assets such as cryptocurrencies and stocks, some of which have lost over 50% since the start of the year.
XAUUSD has broken through the support trend line on the weekly timeframe with a strong
impulse. Currently, the price is heading towards $1745, the main on the same timeframe. As soon as a weekly candle closes below this level, XAUUSD will head towards $1725 and $1690.
However, the breakout might now happen right away. Risky traders might try to catch a pullback by buying gold at $1745 with the target at $1765.
Apart from inflationary pressures, all other factors were serving as tailwinds to gold after reaching $2000 in August 2020. But inflation along with the slowing global economy are the factors that make gold shining brighter.
Gold is one of the most popular trading assets in the world, with a several age history and an unbelievably large market capitalization of $11 trillion.
The past two years have seen the biggest swings in oil prices in 14 years, which have baffled markets, investors, and traders due to geopolitical tensions and the shift towards clean energy.
The e-commerce giant has recently faced a lot of pressure, starting from global uncertainty in China amid lockdowns and geopolitics. The company has been added to the US SEC (Securities and Exchange Commission) delisting queue. Finally, there’s an earnings report coming on August 4. Let’s discuss everything and prepare for the next move.
About the company Inovio Pharmaceuticals Inc (INO) is a biotechnology company that focuses on developing DNA immunotherapies and vaccines to treat and prevent various cancers and infectious diseases…