logo |

News

    Home   >     Industry    >     Main body

    Gold Price Outlook Turns to Fedspeak After Consumer Inflation Expectations Jitter

    Abstract:GOLD, XAU/USD, US DOLLAR, TREASURIES, FED, INFLATION EXPECTATIONS - TALKING POINTS:
    •   Gold prices gave up most gains on Monday during Wall Street trade

    •   Fed inflation expectations survey unnerved markets, eyes on speeches

    •   XAU/USD remains in a near-term uptrend, broader downtrend holds

      

    960x0.jpg

      Anti-fiat gold prices climbed over the past 24 hours, but the yellow metal lost most of its upside progress during the Wall Street trading session. XAU/USD initially capitalized on a falling US Dollar in the aftermath of last weeks disappointing non-farm payrolls report. But, risk aversion reversed this trend as the haven-linked Greenback regained some of its lost ground.

      The deceleration in gold seemed to occur in the aftermath of the Federal Reserves inflation expectations survey. The report showed that price growth estimates for one year out were anchored at 3.36% in April versus 3.24% prior. That was the highest outcome since September 2013. Consumers also anticipate the price of gasoline, food and rent to climb 9.18%, 5.79% and 9.49% respectively.

      The rise in inflation estimates seemed to push up Treasury yields, making relatively safer bonds more competitive compared to other parts of the market. That includes tech stocks, where perceptions of lofty valuations linger. These experienced some of the largest declines among equities during the North American session. The flight to safety brought up demand for the US Dollar, pressuring XAU/USD lower.

      With that in mind, all eyes are on Fedspeak in the remaining 24 hours. Presidents of the New York, San Francisco, Atlanta and Philadelphia branches are due to speak. If they continue to downplay near-term rising CPI expectations, it could calm global equity markets, pressuring bond rates and the US Dollar. Such an outcome could end up being well for gold. Check out the DailyFX Economic Calendar for more Fed speak times.

    GOLD TECHNICAL ANALYSIS

      On the 4-hour chart below, gold remains in a near-term uptrend, defined by the bounce in late March. Having said that, falling resistance from 2020 is maintaining the broader downtrend. Negative RSI divergence does show that upside momentum is fading, which can at times precede a turn lower. This could consequentially place the focus on the 20-period Simple Moving Average.

    XAU/USD 4-HOUR CHART
    Gold

        ==========

          WikiFX, a global leading broker inquiry platform!

          Use WikiFX to get free trading strategies, scam alerts, and experts experience!

          ╔════════════════╗

          Android : cutt.ly/Bkn0jKJ

          iOS : cutt.ly/ekn0yOC

          ╚════════════════╝

    wiki

    United Arab Emirates Dirham

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand

    United States Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand
    Current Rate  :
    --
    Amount
    United Arab Emirates Dirham
    Available
    -- United States Dollar
    Risk Warning

    The Database of WikiFX comes from the official regulatory authorities , such as the FCA, ASIC, etc. The published content is also based on fairness, objectivity and fact. WikiFX doesn't ask for PR fees, advertising fees, ranking fees, data cleaning fees and other illogical fees. WikiFX will do its utmost to maintain the consistency and synchronization of database with authoritative data sources such as regulatory authorities, but does not guarantee the data to be up to date consistently.

    Given the complexity of forex industry, some brokers are issued legal licenses by cheating regulation institutes. If the data published by WikiFX are not in accordance with the fact, please click 'Complaints 'and 'Correction' to inform us. We will check immediately and release the results.

    Foreign exchange, precious metals and over-the-counter (OTC) contracts are leveraged products, which have high risks and may lead to losses of your investment principal. Please invest rationally.

    Special Note, the content of the Wikifx site is for information purposes only and should not be construed as investment advice. The Forex broker is chosen by the client. The client understands and takes into account all risks arising with Forex trading is not relevant with WikiFX, the client should bear full responsibility for their consequences.