{"id":86567,"date":"2024-06-25T16:12:48","date_gmt":"2024-06-25T13:12:48","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=86567"},"modified":"2024-06-26T16:40:46","modified_gmt":"2024-06-26T13:40:46","slug":"gold-outlook-gold-traders-remain-on-the-edge-of-their-seats","status":"publish","type":"post","link":"https:\/\/www.ironfxcn.com\/es\/gold-outlook-gold-traders-remain-on-the-edge-of-their-seats\/","title":{"rendered":"Gold Outlook: Gold traders remain on the edge of their seats"},"content":{"rendered":"

Gold\u2019s price moved appears to have moved in a relatively sideways fashion since last week gold report<\/a>. Today we are to discuss the fundamental challenges laid ahead for the precious metal as well as upcoming financial releases that may affect the direction of its price action. Finally, we will be concluding this report with a technical analysis of gold\u2019s daily chart.<\/p>\n\n\n\n

Technical analysis of gold\u2019s daily chart<\/strong><\/h2>\n\n\n\n

Are some Fed policymakers reluctant to cut interest rates?<\/strong><\/strong><\/h3>\n\n\n\n

Fed Governor Bowman stated<\/a> earlier on today that she was open to raising interest rates if inflation doesn\u2019t improve. The comments made by the Governor tend to imply that the lack of progress in combating inflationary pressures in the US economy means that \u201cwe are still not yet at the point where it is appropriate to lower the policy rate\u201d.\u00a0<\/p>\n\n\n\n

Moreover, San Francisco Fed President Daly stated<\/a> yesterday that \u201cthe bumpiness of inflation data so far this year has not inspired confidence\u201d. As such, the remarks by San Fransisco Fed President Daly and Fed Governor Bowman may be interpreted as a willingness by Fed policymakers to keep interest rates higher for longer.<\/p>\n\n\n\n

As such, should more Fed policymakers adopt a more hawkish tone and push back against the market’s expectations of two rate cuts by the Fed by the end of the year, it could provide support for the dollar whilst potentially weighing on the precious metal.<\/p>\n\n\n\n

On the flip side, should Fed policymakers adopt a more dovish tone, it could weigh on the greenback, whilst providing support for the precious metal\u2019s price, given their inverse relationship with one another. Nonetheless, the overall tone emerging from Fed policymakers at this point in time appears to be hawkish in nature, although that remains to be seen.<\/p>\n\n\n\n

Mid-East tensions rise<\/strong><\/strong><\/h3>\n\n\n\n

Tensions in the Middle East appear to be on the rise again, as Israel and Hezbollah seem to be on the verge of going to war with one another. In particular, last Tuesday the Israeli military approved \u201coperational plans for an offensive in Lebanon\u201d per the FT<\/a>.<\/p>\n\n\n\n

The approval of the \u201coperational plans\u201d appears to have been interpreted as a preparation for a full-blown war between the Israeli military and Hezbollah, as the two sides have been trading fire on an almost daily basis since the beginning of the war between Israel and Hamas in the Gaza strip.<\/p>\n\n\n\n

Furthermore, the Hezbollah Chief also threatened the European nation of Cyprus in his televised speech, further complicating matters in the region. Nonetheless, the possibility of another war in the Middle East may funnel safe-haven inflows into the precious metal as the geopolitical stability of the region continues to deteriorate.<\/p>\n\n\n\n

US Financial releases<\/strong><\/strong><\/strong><\/strong><\/h3>\n\n\n\n

The US Core PCE rate for May which is the Fed\u2019s favourite tool for measuring inflationary pressures in the US economy is set to be released on Friday. The current expectation by economists is for the Core PCE rate to come in at 2.6% which would be lower than the prior rate of 2.8%.<\/p>\n\n\n\n

Such a scenario would imply that inflationary pressures in the US economy may be easing and as such, may increase pressure on the Fed to ease its monetary policy stance. In turn this could weigh on the greenback, whilst potentially aiding the precious metal\u2019s price given their inverse relationship with one another.<\/p>\n\n\n\n

However, should the Core PCE rate unexpectedly accelerate and thus imply intensifying inflationary pressures it may provide support for the dollar, whilst potentially weighing on gold\u2019s price.<\/p>\n\n\n\n

Gold Technical Analysis<\/strong><\/h2>\n\n\n\n

XAUUSD Daily Chart<\/strong><\/h3>\n\n\n\n
\"Technical<\/figure>\n\n\n\n