XAU/USD is eyeing $1 850. Will it be able to reach it?
Gold prices rose ahead of Fed statement
Information is not investment advice
A temporary return of risk-off pushed XAU/USD upward after the recent pullback. It has broken through the key resistance level at $1700, that’s why it may continue climbing up further to the next retracement level at $1750. Last Friday gold prices fell dramatically after the surprisingly positive NFP report to the support level at $1680. That encouraging data was a clear signal that economy is recovering. As a result, investors turned to riskier assets that day on an optimistic tone.
Nevertheless, gold prices have gained for two days straight ahead of the Fed statement on June 10 at 21:00 MT time. Gold traders are waiting for guidelines from Jerome Powell, the Head of the Fed. If interest rates are low, gold will gain. It decreases the opportunity cost of holding non-yielding metal. Gold is also likely to be a hedge against inflation. The Fed’s prospect on a future recovery and downside risks will affect gold prices. Stay tuned!
U.S. stocks are seen opening mixed Thursday, pausing around record highs as investors await more fresh news on Covid-19 vaccines and potential fiscal stimulus.
A tentative mood was seen in Asia-Pacific bourses following the flat performance on Wall Street, whilst Chinese Caixin Services PMI printed its second-highest reading in a decade.
EUR/AUD rose to 1…