Forecast for Gold Price — Gold Markets Test 200-Day EMA
Gold continues to hover around the 200-day exponential moving average, attempting to discern if the trend will change.
Gold continues to hover around the 200-day exponential moving average, attempting to discern if the trend will change.
No one disputes that inflation is a problem, and the Federal Reserve and numerous other central banks across the world are fighting a losing struggle against escalating inflationary pressures.
During the past trading week, gold prices have declined little to break through the $1680 threshold once again. As long as the Federal Reserve continues to tighten monetary policy, it seems likely that the status quo will persist.
After only two weeks of announcing a significant reversal in monetary policy, the Bank of England could be compelled to implement yet another round of quantitative easing measures if economic conditions so require.
Tuesday’s trading session saw a slight decline in the gold market, as it continues to appear that the market is close to breaking down.
After shattering a support line that had held for two months, the gold price has continued to decline and is now within striking distance of an annual low. The XAU/USD bears are optimistic due to firmer yields and worries about China. The US retail sales report is being anticipated with caution after lower than expected CPI and PPI failed to calm hawkish Fed predictions.
Tuesday’s trading session saw a slight decline in gold prices, as we continue to hover near the same support gap that we tested on Monday.
As the US dollar loses some ground before the session’s end, gold holds steady. Following the Fed, US rates are under pressure, and gold bulls are once again active.
The previous week was one of the worst for gold prices in 2022, and the next economic news may bring little relief. With major central banks continuing to raise interest rates and inflation prospects declining, the situation for gold prices remains challenging.
The gold price is hanging at $1,800.00, and a decline is imminent as the DXY recovers. Fed Powell cannot provide an assurance that the inflation rate would fall to 2 percent. On the ISM PMI front, investors anticipate a lackluster showing.