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May 19th news: With the substantial progress of the high-level economic and trade talks between China and the United States, the U.S. stock market has rebounded recently. However, people in the U.S. financial sector have warned that the risk of market volatility caused by the U.S. tariff policy still exists. Perlosky, founder of the U.S. TPW consulting firm, said that the U.S. governments tariff policy has undermined peoples trust in the U.S. government. The current U.S. tariff level is still at a historical high and will continue to impact the U.S. economy. Analysts at UBS Group pointed out that the 10% base tariff imposed by the U.S. government on imported goods may not be reduced through trade negotiations. The additional tariffs may lead to a slowdown in the U.S. economic growth and push up prices. Continued uncertainty may trigger further market fluctuations. U.S. media reported that people in the financial sector expect that if there is no specific solution to the trade dispute caused by the U.S. tariff policy, the U.S. stock market may fall again.The UK Rightmove average house asking price index rose 1.2% year-on-year in May, compared with 1.30% in the previous month.The UK Rightmove average house asking price index rose by 0.6% month-on-month in May, compared with 1.40% in the previous period.On May 19, the article stated that where the world is going depends largely on the strategic choices of major powers. If trust and cooperation consensus are established between major powers, then the sense of cooperation in the international community will become popular and continue to develop in various fields; on the contrary, if major powers are suspicious of each other and confrontation prevails, then it will be difficult for the international community to form a consensus on cooperation, let alone the results of cooperation. There is no way out of confrontation, and cooperation is what people want and the general trend. The world should cooperate instead of confrontation. This is the requirement of the times and the inevitable choice for the development of human society.The railroad strike in New Jersey, USA, ends.

Forecast for the price of gold: XAU/USD bulls target $1,732-33 barrier, focusing on US data, Fed

Alina Haynes

Jul 26, 2022 11:58

 截屏2022-07-26 上午11.42.53.png

 

As bulls again approach the 100-SMA barrier during Tuesday's Asian session after failing to breach it the previous two days, gold price (XAU/USD) consolidates the week-start losses. However, as of the time of writing, the yellow metal shows modest increases of about $1,725.

 

The recent advances in bullion may be related to the weaker US currency, which is being accompanied by low Treasury rates and recession worries in the US. The US Dollar Index (DXY) therefore declines for the fourth day in a row, down 0.18 percent intraday at roughly 106.30 as of the time of publication. Reversing the previous day's rally to 2.81 percent, the US 10-year Treasury rates are now down 3.5 basis points to 2.78 percent. Additionally, the US S&P Global PMIs for July, released on Friday, and the Chicago Fed National Activity Index for June on Monday, both increased global economic concerns regarding the US. Recent downgrades in growth projections for the US, the Eurozone, and both failed to strengthen the US dollar.

 

Additionally, Bloomberg's study indicates that the lower USD and the metal's historical role as a safe haven support the XAU/USD comeback and are supported by worries about the Chinese recession that are teasing the global economic downturn.

 

In a similar vein, Walmart's reduction in profit projections and concerns about future consumer spending declines are further drivers that support the risk-off mindset during a slow day. A further strain on risk appetite is the downgrading of the US and European GDP predictions by the global rating juggernaut Moody's.

 

While these maneuvers are going on, the S&P 500 Futures retreat to 3,955, down 0.40 percent intraday, failing to follow Wall Street.

 

Nevertheless, a light schedule in Europe may limit the movements of the gold price. However, the important indicator for pair traders to keep an eye on is today's US CB Consumer Confidence for July, which was previous to 98.7. The US New Home Sales for June, the Richmond Fed Manufacturing Index for July, and the May House Price Index data will all be crucial. The pre-Fed conversations and growth-related conversations will be especially important to monitor for clear instructions.

 

From the 50-SMA, gold continues to rise until it reaches the 100-SMA barrier at $1,732-33. However, slow MACD suggests that the metal may still be ground between the important 100-SMA and the 50-SMA, which are close to $1,732-33 and $1,712 in that order.

 

It's important to keep in mind that the swing high from July 2008 and a downward-sloping resistance line from the beginning of June, which are around $1,752 and $1,766 in that order, might potentially provide obstacles for XAU/USD buyers over $1,733.

 

On the other hand, eight-day horizontal support at $1,698-97 may stop the metal's decline from moving past the 50-SMA. The most recent multi-month low at $1,680 and the 61.8 percent Fibonacci Expansion (FE) of July 04-22 downward, around $1,656, might entice the bears should the price go below $1,698.