{"id":63345,"date":"2023-05-23T16:42:19","date_gmt":"2023-05-23T13:42:19","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=63345"},"modified":"2024-07-10T15:00:09","modified_gmt":"2024-07-10T12:00:09","slug":"gold-moves-lower-for-the-3rd-week-in-a-row","status":"publish","type":"post","link":"https:\/\/www.smartindonesiafx.id\/pt\/gold-moves-lower-for-the-3rd-week-in-a-row\/","title":{"rendered":"Gold moves lower for the 3rd week in a row"},"content":{"rendered":"

Ouro<\/strong> continues moving lower<\/strong><\/a>, as progress appears to have been made in prevented the US<\/strong> from defaulting<\/strong> on its debt<\/strong>, with traders awaiting the FOMC<\/strong> May meeting<\/strong> minutes<\/strong> tomorrow and the Core PCE rates<\/strong> on Friday. Furthermore, at the time of this report, it appears that the shiny metal is moving in a downwards fashion. In this report, we aim to shed light on the catalysts driving the precious metal\u2019s price, assess its future outlook and conclude with a technical analysis.<\/p>\n\n\n\n

US debt talks in the spotlight.<\/strong><\/h2>\n\n\n\n

Since last week, legislative leaders<\/strong> appear to have made progress<\/strong> in reaching an agreement<\/strong> to raise the debt ceiling limit<\/strong>, as we rapidly approach the so called \u2018X-Date\u2019<\/strong>. Despite lawmakers such as, House Speaker McCarthy (R) and President Biden (D)<\/strong> both stating that the meeting<\/strong> held between them was productive<\/strong>, with some progress<\/strong> being made on reaching<\/strong> a deal<\/strong>, the two sides have yet<\/strong> to find<\/strong> common<\/strong> ground<\/strong> on key fundamental<\/strong> differences<\/strong>. Few examples of issues<\/strong> of disagreement include raising<\/strong> taxes<\/strong> e ainda closing<\/strong> tax loopholes<\/strong> for oil<\/strong> e ainda pharmaceutical<\/strong> companies alongside the spending<\/strong> allocation assigned to military<\/strong> operations. As a result, should negotiations<\/strong> break<\/strong> down, we may see heightened market<\/strong> Volatilidade<\/strong> due to the imminent<\/strong> deadline<\/strong> upon which the US<\/strong> may default<\/strong> on its debt<\/strong>. Once again, we re-iterate the potential scenario where should the US<\/strong> fail<\/strong> to uphold its financial<\/strong> obligations<\/strong>, it would most likely lead<\/strong> to the nation<\/strong> being downgraded<\/strong> by credit<\/strong> rating agencies<\/strong>, followed by a mass sell<\/strong>–off<\/strong> of US debt<\/strong> which could potentially spark a US stock market crash<\/strong>, as the financial industry<\/strong> remains on thin<\/strong> ice<\/strong>. In the event that the debt<\/strong> ceiling standoff<\/strong> continues, we may see market<\/strong> sentiment<\/strong> shift<\/strong> away from the optimistic<\/strong> outlook<\/strong> of a deal<\/strong> being reached<\/strong>, leading to traders<\/strong> getting anxious<\/strong> that they may be over-exposed<\/strong> in the US markets<\/strong>. This might lead to the bullion<\/strong> receiving safe<\/strong> haven<\/strong> inflows<\/strong>, given its status as a hedge<\/strong> during times of financial instability<\/strong>, hence moving the precious<\/strong> to higher<\/strong> ground amidst economic<\/strong> e ainda political<\/strong> turmoil<\/strong>.<\/a><\/p>\n\n\n\n

US Financial releases could swing the markets in either direction.<\/strong><\/h2>\n\n\n\n

One may be excused for forgetting that during tomorrow\u2019s American session, the FOMC\u2019s<\/strong> last meeting<\/strong> minutes<\/strong> are due to be released<\/strong>. Therefore, given the recent dovish<\/strong> rhetoric<\/strong> from Fed<\/strong> Chair Powell<\/strong> stating that the Fed\u2019s \u201cpolicy rate may not need to rise as much as it would have otherwise to achieve our goals\u201d, could imply that the Fed<\/strong> may be nearing<\/strong> its peak<\/strong> rate<\/strong> or may consider keeping interest<\/strong> rates<\/strong> at current levels<\/strong>. Hence, given the slightly dovish<\/strong> comments from Fed<\/strong> policymakers<\/strong>, whose comments may be attempting to prepare the markets<\/strong> ahead of release of the meeting<\/strong> minutes<\/strong>, may indicate<\/strong> that there is growing pressure<\/strong> towards the Fed<\/strong>, to pause<\/strong> rates<\/strong> sooner rather than later. Furthermore, in combination with the core PCE rates<\/strong> on Friday, which are expected to decrease<\/strong>, we may see the precious<\/strong> gaining<\/strong> on the back of a weaker<\/strong> dollar<\/strong>, potentially bringing<\/strong> the bullion<\/strong> back above<\/strong> the $2000 key psychological level<\/strong>. On the other hand, should the FOMC<\/strong> minutes<\/strong> take a more hawkish<\/strong> tone<\/strong> with the indication of prolonged rate hikes<\/strong>, in addition to the PCE rates coming in higher than expected<\/strong>, we may see the precious<\/strong> loosing<\/strong> further ground<\/strong> in its battle<\/strong> against a stronger<\/strong> dollar<\/strong>.<\/p>\n\n\n\n

An\u00e1lise t\u00e9cnica<\/strong><\/h2>\n\n\n\n

XAUUSD H4 Chart<\/em><\/strong><\/h3>\n\n\n\n
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