{"id":68228,"date":"2023-08-22T15:19:47","date_gmt":"2023-08-22T12:19:47","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=68228"},"modified":"2025-11-25T10:23:16","modified_gmt":"2025-11-25T08:23:16","slug":"gold-seems-to-have-stopped-the-bleeding-for-now","status":"publish","type":"post","link":"https:\/\/www.ironfxcn.com\/ms\/gold-seems-to-have-stopped-the-bleeding-for-now\/","title":{"rendered":"Gold seems to have stopped the bleeding, for now"},"content":{"rendered":"

Gold seems to have managed to stop the bleeding<\/a>, as for the current week, gold currently seems to be in an upwards trajectory, once again the correlation of the USD with gold\u2019s price seems to be maintained and maybe the main factor behind the movement of gold\u2019s price currently. We note the potential for high volatility in the gold market, due to the current BRICS conference which is currently underway. In this report, we aim to shed light on the catalysts driving gold\u2019s price, assess its future outlook<\/a> and conclude with a technical analysis. <\/p>\n\n\n\n

BRICS summit begins.<\/strong><\/h2>\n\n\n\n

As of today, the widely anticipated BRICS<\/strong> summit<\/strong> appears to have begun. It has been widely speculated<\/strong> that part of the discussion<\/strong> between the summit leaders, could potentially include a discussion<\/strong> about a formation of a common<\/strong> currency<\/strong> that could be backed<\/strong> by a basket<\/strong> of precious<\/strong> logam<\/strong>, in particular gold<\/strong>. In the event that a framework<\/strong> is laid out for the gradual<\/strong> adoption<\/strong> of a common<\/strong> currency<\/strong> which is backed by a basket of precious<\/strong> logam<\/strong>, we may see the precious<\/strong> gaining<\/strong> ground<\/strong>, as it could mark the beginning of a shift back to the gold<\/strong> standard<\/strong>.<\/p>\n\n\n\n

Furthermore, with the possibility<\/strong> of new members<\/strong> being announced who have already expressed<\/strong> interest in joining<\/strong> the bloc, such as Saudi Arabia<\/strong> and the UAE<\/strong>, talks about potential de-dollarization, may provide support<\/strong> for the precious metal<\/strong>, as a gradual<\/strong> shift<\/strong> away from the greenback<\/strong> as the worlds reserve<\/strong> currency<\/strong>, could weaken the dollar<\/strong> and could facilitate inflows<\/strong> into gold<\/strong>, given their inverse<\/strong> relationship<\/strong>.<\/p>\n\n\n\n

However<\/strong>, it is unlikely<\/strong> that the BRICS<\/strong> will announce a rapid plan<\/strong> to move away from the dollar or a common<\/strong> currency<\/strong> backed by gold<\/strong>. Therefore, gold\u2019s<\/strong> price may be dictated<\/strong> by news reports stemming from the conference<\/strong> which may indicate<\/strong> these alleged<\/strong> moves<\/strong> of de<\/strong>–dollarization<\/strong> or a common<\/strong> currency<\/strong> backed by a basket of precious<\/strong> logam<\/strong>.<\/p>\n\n\n\n

FOMC July meeting minutes open the door for future rate hikes.<\/strong><\/h2>\n\n\n\n

Last Thursday, the FOMC<\/strong> July<\/strong> meeting minutes, indicated that \u201cmost participants continued to see significant upside risks to inflation, which could require further tightening of monetary policy\u201d, implying that the bank<\/strong> may continue its in rate<\/strong> hiking path<\/strong>. Yet two officials<\/strong> favored<\/strong> leaving<\/strong> rates<\/strong> unchanged<\/strong>, potentially hinting<\/strong> at some signs of dissent<\/strong> in the FOMC<\/strong>.<\/p>\n\n\n\n

It would appear that the potential for future<\/strong> rate hikes seemed to have provided<\/strong> support<\/strong> for the greenback<\/strong> and potentially may have aided<\/strong> in the deterioration<\/strong> of the precious<\/strong> metal<\/strong>, as the dollar<\/strong> strengthens<\/strong> the precious<\/strong> metal<\/strong> is more expensive<\/strong> for overseas investors<\/strong>, highlighting<\/strong> once again their inverse<\/strong> relationship<\/strong>.<\/p>\n\n\n\n

Furthermore, the US Treasury Yields, continue to remain at elevated<\/strong> levels<\/strong> as was mentioned in last week\u2019s report and at the time of this report<\/strong> the US 10-Year Treasury yields<\/strong> having reached<\/strong> levels<\/strong> last seen in November 2007<\/strong>, it could potentially<\/strong> indicate<\/strong> that the markets<\/strong> are still operating<\/strong> under the assumption<\/strong> that interest rates<\/strong> in the US<\/strong> may stay<\/strong> at current levels<\/strong> atau higher<\/strong> for a prolonged<\/strong> period of time<\/strong>.<\/p>\n\n\n\n

Therefore, should Fed Chair Powell\u2019s <\/strong>comments during his speech<\/strong> at the Jackson<\/strong> Hole<\/strong> conference<\/strong> be interpreted as hawkish<\/strong> in nature, we could potentially see<\/strong> the greenback<\/strong> strengthening<\/strong> and it could potentially<\/strong> weigh<\/strong> on the price<\/strong> of the precious<\/strong>, given the inverse<\/strong> relationship<\/strong> experienced<\/strong> between gold<\/strong> and the greenback<\/strong>.<\/p>\n\n\n\n

Analisis Teknikal<\/strong><\/h2>\n\n\n\n

XAUUSD H4 Chart<\/em><\/strong><\/h3>\n\n\n\n
\"\"<\/figure>\n\n\n\n