Interest Rate Hike is Imminent, So Does The Drop of Gold Price ?
As we all know that the Fed has announced the increase of interest rate is going to come as early as March 2022.
Although it is not guaranteed, but usually the price of gold is going down when the interest rate moves higher due to investors switching their funds to other attractive investments such as bonds and stocks.
Lets see on the chart, based on the daily chart of Gold, we actually can draw the Elliot Waves and see a possibility of breakout on the bottom of the last line which could trigger a new trend if it happens. At the current point of time, I agree that the breakout has not happened yet. However, due to the interest rate news, I will be more comfortable if the price can drop below the line.
All the best!
Although it is not guaranteed, but usually the price of gold is going down when the interest rate moves higher due to investors switching their funds to other attractive investments such as bonds and stocks.
Lets see on the chart, based on the daily chart of Gold, we actually can draw the Elliot Waves and see a possibility of breakout on the bottom of the last line which could trigger a new trend if it happens. At the current point of time, I agree that the breakout has not happened yet. However, due to the interest rate news, I will be more comfortable if the price can drop below the line.
All the best!
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