Gold goes offered on a hawkish Powell as the US dollar rallies. The US dollar has popped out of a 15-min wedge formation to the upside.
The gold price was changing hands between the bulls and the bears during the Federal Reserve’s chairman Jerome Powell’s interview with the Wall Street Journal. At the time of writing, as the event concludes, XAU/USD is trading offered as the US dollar picks up a bid. The yellow metal is down some 0.48% at $1,815.50, falling from a high of $1,836.15 on the day printing a low of $1,813.74.
The US Dollar Currency Index (DXY), which tracks the greenback against six major currencies, was down 0.82% at 103.33, a touch away from the low of 103.226 ahead of the Powell event:On hawkish rhetoric, the price has rallied out of the containment of the wedge formation as follows.
While well off the two-decade high made last week, which was made on the heels of strong inflation data and supported by a hawkish Federal Reserve, as well as worries over the global economic fallout from the Russia-Ukraine conflict, the bulls are stepping in again. As a consequence, the price of gold is suffering.
”A failure to confirm the early morning strength would see CTA selling resume course to a large net short position,” analysts at TD Securities argued. ”With the Fed telegraphing their every move, Fedspeak will be increasingly important this week, particularly as bearish sentiment continues to undermine positioning. In turn, we continue to expect substantial selling flow to weigh on the yellow metal when liquidity is scarce.”
Gold technical analysis
The failure to close above a 61.8% ratio leaves the outlook bearish, in line with the broader bearish trend:
EUR/USD holds on to gains after Powell’s words
The EUR/USD pair holds on to most of its gains, trading around 1.0540, after US Federal Reserve Chair Jerome Powell spoke on inflation and economic growth. Powell repeated the central bank’s main focus is to tame inflation.
GBP/USD surges to fresh 12-day highs, tests 1.2500
GBP/USD has preserved its bullish momentum and climbed to its highest level in 12 days near 1.2500. Although the upbeat data from the US seems to be helping the dollar limit its losses, the pair is still up more than 1% on the day above 1.2450.
Gold bears ready to jump in at higher levels
Gold traded as high as $1,836.07 on Tuesday as the American dollar came under broad pressure. The greenback extended its bearish corrective decline as global stocks recovered from last week’s sell-off.
Forget about the crypto winter; Bitcoin price readies to kick start the summer rally
Bitcoin (BTC) price sees bulls returning to the scene to pick up the pieces from the scattered BTC price that saw slaughter in the past trading days.