Market news
23.11.2022, 02:07

Gold Price Forecast: XAU/USD bulls step in at a 61.8% golden ratio

  • Gold stalls at a 61.8% ratio ahead of FOMC minutes.
  • Gold bulls seek a meanwhile bullish correction depending on the outcome of the FOMC minutes.

The Gold price is higher on Wednesday buoyed by a weaker greenback that retreated across the board on Tuesday and remains offered in Asia. Investors are looking past worries about China's COVID flare-ups ahead of Wednesday's Federal Open Market Committee Minutes.

Equities and high-beta currencies were favoured overnight, putting the US Dollar to the bottom of the leaderboard and supporting gold prices a touch higher. The DXY index, that measure the greenback vs. a basket of currencies was last seen below the overnight highs and scraping the bottom of the 107's.

The S&P 500 was closing at its highest level in 2-1/2 months. The Dow Jones Industrial Average rose 397.82 points, or 1.18%, to 34,098.1, the S&P 500 gained 53.64 points, or 1.36%, to 4,003.58 and the Nasdaq Composite added 149.90 points, or 1.36%, to 11,174.41. US stock futures were little changed on Wednesday as investors braced for the latest Federal Reserve meeting minutes that could guide the US rates outlook.

Meanwhile, supportive of Gold, there are prospects of a pivot from the Federal Reserve due to recent cooler-than-expected inflationary data within economic releases, notably the last US Consumer Price Index.  A rally in bonds also pushed the 10-year yield down 6bps to 3.77%, helping support investor appetite. Market participants are awaiting the minutes of Fed's Nov. 1-2 policy meeting due at 1900 GMT.

On Tuesday, Kansas City Fed President Esther George said the Fed may need to raise interest rates to a higher level and hold them there for longer in order to successfully moderate consumer demand and bring down high inflation. Fed Bank of Cleveland President Loretta Mester explained that getting inflation down remains the most critical.

Gold technical analysis

 A deeper correction has taken on the $1,750 level as per the confluence of the 38.2% Fibonacci and has subsequently moved in on the 61.8% ratio:

This could lead to a meanwhile bullish correction depending on the outcome of the FOMC minutes and sentiment surrounding the Fed.

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location