GOLD PREDICTORS

Gold prices are paused from a drop from the long-term inflection of $1,680 and consolidates its drop before the FOMC meetings on Friday. The Fed is expected to increases rates by 75 bps. Investors are avoiding any directional bets on the gold before FED announcements on interest rates decisions, which might influence precious metals and US dollar values. It was expected that gold would break lower to the inflection point of $1,680, with the next market move based on the next breakout at $1,680. However, based on the negative price action from last few months, it was predicted that $1,680 would be broken and much ...
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The gold price looks to extend its rebound from the support region, while the US dollar index is taking a deep breath after a strong rally. The August Nonfarm Payrolls (NFP) and unemployment rate will be released on September 2, 12:30 GMT. These announcements are likely to trigger severe market volatility. Analysts anticipate that the US economy created 295K new jobs last month. The unemployment rate is anticipated to remain at 3.5%. Investors and traders are particularly focused on wage growth, which is predicted to accelerate from 5.2% YoY to 5.3%. Weak NFP numbers are expected to exert pressure on the USD and strengthen the gold, as investors ...
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The Fed raised the federal funds rate by 75 basis points to 2.25-2.50%, the year's second largest move, making the current tightening cycle the steepest in modern history. Despite all of the hawkish rhetoric, the Fed raised interest rates to their highest levels of the year, but there is still a long way to go before reaching the restrictive levels. This is disappointing news for gold because higher interest rates are inversely proportional to gold. The chart below depicts the Fed's balance sheet, which barely decreases in the first quarter of 2022 despite quantitative tightness. According to the Bureau of Economic Analysis, the United States' ...
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