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- Gold decreases for the second day with the disappearance of a safe appeal, although the Powell highlights with an increase in negative risks.
- The Powell states can be delayed by work for clarity, indicating that definitions may extend inflation, which causes golden bulls.
- The Fed Hawkish DXY tone strengthens 0.47 % to 102.56; Deepening the reflection curve of reversal fears.
Gold prices extend their decrease for the second day in a row, as it reached the lowest level in seven days of 3,023 dollars for each ounce of recitation, a decrease of more than 2.80 % as president of the Federal Reserve Jerome Powell Falcons were turned into a conference in Virginia.
Xau/USD is drowned to $ 3,023 as a federal reserve currency, it may warn the inflation driven by the customs tariff
Powell said that monetary policy is in a good position to wait for clarity before considering the amendments to monetary policy, adding that “the customs tariff that is likely to cause inflation in the upcoming seasons; more stable effects.”
He added that the long -term inflation measures are “well based”, and that the US Central Bank’s commitment is to ensure that “increasing price levels for one time does not become a problem with continuous inflation.”
Regarding the economy, he added that the view is very uncertain, and despite the fact that the economy is in a good place, negative risks have increased.
Powell also answers the questions, the gold prices have extended their losses. It should be noted that Greenback is offered bids, with the US dollar index (DXY) increased from 0.47 % to 102.56.
The price of money market traders was more than 1 % of the Federal Reserve Reduction by 2025. This is due to a pessimistic scenario about Economic expectations. Investors began pricing in a stagnation, as the return curve in the United States for 10 years to 3 months has deepened its reflection, as the latter paid 25 basis points more than 10 years.
Gold price reaction
gold He is the time at the time of writing this report, as the sellers continued to pay prices to a decrease, with the challenge of the 3000 dollar sign. If it is wiped, this will put on a simple moving average for 50 days (SMA) at $ 2,937, followed by No. 2900 dollars. On the other hand, if the Xau/USD edges are higher, buyers must restore $ 3,100 if they want to restore Contro.
Common Gold questions
Gold played a major role in human history, as it was widely used as a store for value and exchange. Currently, regardless of its brilliance and use of jewelry, the precious metal is widely seen as a safe asset, which means it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against currency decline because it does not depend on any specific source or government.
Central banks are the largest gold holders. In their goal to support their currencies at troubled times, central banks tend to diversify their reserves and buy gold to improve the powerful power and currency. High gold reserves can be a source of confidence to the dissolved country. Central banks added 1136 tons of gold worth $ 70 billion to their reserves in 2022, according to the data of the Golden Golden Council. This is the highest annual purchase since the start of the records. Central banks of emerging economies such as China, India and Turkey increase their gold reserves.
Gold has a counter -relationship with the US dollar and the United States Treasury, which is one of the main reserves and safe assets. When the dollar decreases, gold tends to rise, allowing investors and central banks to diversify their assets at turbulent times. Gold is inversely associated with the origins of the risk. The assembly in the stock market weakens the price of gold, while sales in the most dangerous markets tend to prefer precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of deep stagnation can escalate the price of gold due to its safe situation. As a lower asset than the return, gold tends to rise with low interest rates, while the high cost of money usually reaches the yellow metal. However, most moves depend on how the US dollar (USD) is behaved as the original is priced in dollars (Xau/USD). The strong dollar tends to maintain the price of gold -controlled gold, while the weakest dollar is likely to increase the price of gold.
