Gold Loses the Chanсe to Survive!

Read the article on FBS website

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.

 2022-07-06_17-14-14.jpeg

Do you want to get Gold updates Live? Subscribe to the @FBSAnalytics Telegram Channel where I post more daily trade ideas!

 START TRADING

FBS Analyst Team

Share with friends:

Similar

Latest news

Instant opening

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.