{"id":26840,"date":"2023-07-27T04:16:00","date_gmt":"2023-07-27T07:16:00","guid":{"rendered":"https:\/\/tiproject.online\/index.php\/2023\/07\/27\/powells-remarks-open-door-to-heightened-volatility\/"},"modified":"2023-07-27T04:16:00","modified_gmt":"2023-07-27T07:16:00","slug":"powells-remarks-open-door-to-heightened-volatility","status":"publish","type":"post","link":"https:\/\/tiproject.online\/index.php\/2023\/07\/27\/powells-remarks-open-door-to-heightened-volatility\/","title":{"rendered":"Powell’s Remarks Open Door to Heightened Volatility"},"content":{"rendered":"

[ad_1]
\n<\/p>\n

\n
\n

Overview<\/h2>\n

Comex gold<\/a> prices surged to a one-week high on Thursday, bolstered by a slightly weaker dollar following the widely anticipated interest rate hike announced by the U.S. Federal Reserve. Federal Reserve Chair Jerome Powell\u2019s comments offered a balanced perspective, indicating the possibility of another rate hike later in the year. This outlook could result in some volatility for gold prices, with a potential upward movement, depending on forthcoming economic data.<\/p>\n

Powell Leaves Additional Rate Hike on Table<\/h2>\n

The Fed\u2019s decision to implement a 25 basis point hike pushed interest rates to their highest level since 2001. However, Powell\u2019s remarks suggested that the central bank may also consider keeping rates steady at this level, depending on the economic indicators, making future meetings \u2018live\u2019 events. The Fed is closely monitoring inflation, which is currently above their 2% longer-range goal, but Powell reiterated the central bank\u2019s commitment to restoring price stability.<\/p>\n<\/div>\n<\/div>\n

\n
\n

Although the possibility of another rate hike is still on the table, Powell\u2019s assurance that the Fed is no longer forecasting a U.S. recession was comforting to investors. As gold is sensitive to rising interest rates due to the increased opportunity cost of holding non-yielding bullion, the market responded positively to the news.<\/p>\n

Additionally, the dollar index\u2019s decline further supported gold prices, as a weaker dollar makes gold more affordable for holders of other currencies.<\/p>\n

US Economic Data, ECB Policy Decision on Tap<\/h2>\n

Looking ahead, the focus will shift to the United States\u2019 gross domestic product report for the second quarter and the European Central Bank\u2019s policy decision. The ECB is expected to raise rates for the ninth time and then adopt a \u201cdata-dependent\u201d approach. Traders will also be monitoring the Japanese central bank\u2019s actions regarding its yield control program.<\/p>\n

Short-Term Forecast:\u00a0 Data Dependent<\/h2>\n

Overall, gold prices remain subject to the influence of economic data and central bank decisions, making it essential for traders to stay vigilant and responsive to market developments in the short term.<\/p>\n

Technical Analysis<\/h2>\n
<\/div>\n<\/div>\n
\n
4-Hour Comex Gold<\/figcaption>

Comex Gold sentiment is bullish as the current 4-hour price of 1976.10 is trading above both the 200-4H moving average at 1949.20 and the 50-4H moving average at 1969.70, indicating an upward trend. The 14-4H RSI reading of 59.16 suggests moderate bullish momentum, signaling strength without being overbought.<\/p>\n

The market is approaching the main resistance area between 1980.00 and 2000.50, suggesting potential further upward movement. Traders should closely watch the market\u2019s reaction to this zone for future guidance.<\/p>\n<\/div>\n<\/div>\n

[ad_2]
\n
Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

[ad_1] Overview Comex gold prices surged to a one-week high on Thursday, bolstered by a slightly weaker dollar following the widely anticipated interest rate hike announced by the U.S. Federal Reserve. Federal Reserve Chair Jerome Powell\u2019s comments offered a balanced perspective, indicating the possibility of another rate hike later in the year. This outlook could result in some volatility for gold prices, with a potential upward movement, depending on forthcoming economic data. Powell Leaves Additional Rate Hike on Table The Fed\u2019s decision to implement a 25 basis point hike pushed interest rates to their highest level since 2001. However, Powell\u2019s remarks suggested that the central bank may also consider keeping rates steady at this level, depending on the economic indicators, making future meetings \u2018live\u2019 events. The Fed is closely monitoring inflation, which is currently above their 2% longer-range goal, but Powell reiterated the central bank\u2019s commitment to restoring price stability. Although the possibility of another rate hike is still on the table, Powell\u2019s assurance that the Fed is no longer forecasting a U.S. recession was comforting to investors. As gold is sensitive to rising interest rates due to the increased opportunity cost of holding non-yielding bullion, the market responded positively to the news. Additionally, the dollar index\u2019s decline further supported gold prices, as a weaker dollar makes gold more affordable for holders of other currencies. US Economic Data, ECB Policy Decision on Tap Looking ahead, the focus will shift to the United States\u2019 gross domestic product report for the second quarter and the European Central Bank\u2019s policy decision. The ECB is expected to raise rates for the ninth time and then adopt a \u201cdata-dependent\u201d approach. Traders will also be monitoring the Japanese central bank\u2019s actions regarding its yield control program. Short-Term Forecast:\u00a0 Data Dependent Overall, gold prices remain subject to the influence of economic data and central bank decisions, making it essential for traders to stay vigilant and responsive to market developments in the short term. Technical Analysis 4-Hour Comex GoldComex Gold sentiment is bullish as the current 4-hour price of 1976.10 is trading above both the 200-4H moving average at 1949.20 and the 50-4H moving average at 1969.70, indicating an upward trend. The 14-4H RSI reading of 59.16 suggests moderate bullish momentum, signaling strength without being overbought. The market is approaching the main resistance area between 1980.00 and 2000.50, suggesting potential further upward movement. Traders should closely watch the market\u2019s reaction to this zone for future guidance. [ad_2] Source link<\/p>\n","protected":false},"author":1,"featured_media":26841,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[45],"tags":[],"class_list":["post-26840","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financas"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/posts\/26840","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/comments?post=26840"}],"version-history":[{"count":0,"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/posts\/26840\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/media\/26841"}],"wp:attachment":[{"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/media?parent=26840"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/categories?post=26840"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/tags?post=26840"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}