The latest report from the US Commodity Futures Trading Commission indicates that investors believe the price of Gold will decline
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The latest testimony by Mr. Powell also influences the price of XAU/USD and not only currencies and the stock market. The price of Gold has been declining for 2 consecutive trading days and has corrected 4 days of price gains from the past week. In total, the price declined by 1.82% throughout yesterday’s US trading session. The price of gold will continue to be influenced by the price of the US Dollar and the Fed’s monetary policy.
XAU/USD - Gold Tumbles after Powell’s Testimony
Also, Gold has been unable to act as a safe haven asset and as a hedge against inflation due to the Dollar’s strength and the economy's resilience. The latest report from the US Commodity Futures Trading Commission indicates that investors believe the price of Gold will decline. The latest report has shown more contacts speculating a decline compared to long positions.
For further signals and information on technical analysis, investors can also view our latest technical analysis video for Gold.
Gold technical analysis video on March 8th
Read the first part of the update by NAGA: According to Rick Rieder (BlackRock) the high level of employment will likely keep inflation high and warrant a 6% interest rate for the Fed | FXMAG.COM
Summary of both updates by NAGA:
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The Fed point towards higher interest rates for longer to tackle inflation and employment.
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The US Dollar Index increases to a 4-month high as the Dollar climbs against all currencies.
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Rick Rieder from Blackrock advises the high level of employment is likely to keep inflation high and would warrant a 6% terminal rate.
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Most economists now believe the Fed will hike 50 basis points at the next interest rates meeting and decision.
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Gold significantly declines again as the US Dollar climbs and the economy remains resilient.
