The Last Frontier for the USD and Gold
Suddenly, the US Dollar Index fell 6.70% over the last two weeks, marking the biggest decrease in the currency since 2020.
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.
Technical analysis
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.
Similar
Gold isn't saving investors from inflation
Many investors treated gold as a protection against inflation. However, last week, gold lost its major support and dropped despite rising inflation. Why did it act like this?
Fed Pretends to Control the Market
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!
Popular
What Will Happen with the Euro? An Economic Perspective.
eurusd-is-falling-what-to-expect-from-the-future-price-movement
Will Australia's "Rampant Inflation" Prevail in May?
Greetings, fellow forex traders! Exciting news for those with an eye on the Australian market - the upcoming interest rate decision could be good news for Aussies looking to refinance or take out new loans. The Mortgage and Finance Association Australia CEO, Anja Pannek, has...
How Will BoJ Meeting Affect the Yen
Hold onto your hats, folks! The Japanese yen took a nosedive after the Bank of Japan (BOJ) left its ultra-loose policy settings unchanged, including its closely watched yield curve control (YCC) policy. But wait, there's more! The BOJ also removed its forward guidance, which had previously pledged to keep interest rates at current or lower levels. So, what's the scoop? Market expectations had been subdued going into the meeting, but some were still hoping for tweaks to the forward guidance to prepare for an eventual exit from the bank's massive stimulus
Choose your payment system
