EUR/USD 1.18332
0.617%
Gold 3696.31
0.478%
Oil 63.579
0.908%
USD/JPY 146.688
-0.488%
GBP/USD 1.36617
0.472%
GBP/JPY 200.407
-0.011%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
Dutch union FNV: KLM ground staff will strike on September 24 and October 1.On September 16th, the U.S. builder confidence index remained unchanged in September, but lower mortgage rates and market expectations of an imminent Federal Reserve cut in the federal funds rate have driven up expectations for home sales in the coming months. Buddy Hughes, President of the National Association of Home Builders (NAHB), said that while builders are still dealing with rising construction costs, the recent decline in mortgage rates over the past month should help stimulate housing demand. NAHB Chief Economist Robert Dietz noted: "The Federal Reserve is expected to cut the federal funds rate at this weeks meeting, which will help lower loan rates for builders and developers. In addition, according to Freddie Mac data, the average rate on a 30-year fixed-rate mortgage fell 23 basis points to 6.35% over the past four weeks. This is the lowest level since mid-October of last year and a positive sign for future housing demand."Trump: I dont want to make money, I want to stop the Russia-Ukraine conflict.The U.S. commercial inventory monthly rate was 0.2% in July, in line with expectations of 0.20% and the previous value of 0.20%.Doug Porter, chief economist at BMO Capital Markets, said on September 16 that Canadas August inflation report was "quiet" and would not impact the Bank of Canadas interest rate decision on Wednesday. Porter expects the Bank of Canada to cut interest rates by 25 basis points this week. He also noted that inflationary pressures will ease further in the future due to a moderation in the short-term underlying trend in core inflation, which is currently at a three-month annualized rate of 2.5%, well below the annual rate of approximately 3.1%.

After a corrective move, the gold price should find support around $1,650, and talk of the US gross domestic product (GDP) is making the market excited

Alina Haynes

Sep 29, 2022 11:56

 134.png

 

After a massive upswing, the gold price (XAU/USD) is correcting in a healthy way during the Tokyo trading session. As the downward bias is not supported by momentum, the precious metal should attract strong buying interest near the $1,650.00 support level. Thus, after the correction ends, the precious metal will continue climbing.

 

Gold prices have dropped slightly since the US dollar index has shown signs of weakness (DXY). The DXY fell after it was unable to maintain a price above the key resistance level of 144.50. To sum up, the DXY appears to be nearing its peak, which coincides with the Federal Reserve's target of 4.6% for the overnight rate of interest (Fed).

 

After analyzing the Fed's current interest rate hike velocity, it is important to remember that the Fed's peak interest rate is not far from the present interest rate of 3.-3.325%. Until the Fed detects a prolonged softening in price pressures, the terminal rate is likely to remain at 4.6% for a while longer.

 

The US Gross Domestic Product (GDP) figures will be closely monitored by investors on Thursday. According to the early forecasts, the annualized GDP in the United States will continue its downward trend by 0.6% in the third quarter.

 

Gold is falling on an hourly chart, and it is getting close to the horizontal support at $1,649.83, which was set from Monday's high. Since the price of gold is falling steadily, it is likely to take advantage of the horizontal support described above. A reversal of polarity will be indicated, and the shiny metal will start to act more impulsively.

 

Short-term buyers have been able to keep gold prices above the 50-period Exponential Moving Average (EMA) at $1,641.58. Although gold has fallen below the 200-day exponential moving average (EMA) at $1,655.00, it is likely to regain that level in the near future.

 

In the meantime, the Relative Strength Index (RSI) (14) is trending upwards within a bullish range of 60.00-80.00, suggesting further gains. The momentum oscillator may also find support near 60.00.


Suggestion