XAUUSD: Bullish Pennant!
Updated
In early Asia, the gold price XAUUSD is under significant strain due to the increase in pressure to use US inflation, following OPEC+'s surprising announcement of production cuts at the end of the week. The valuable metal has fallen below $1960.00 as there is hope that the Federal Reserve (Fed) will maintain higher interest rates for a longer period. With the expectation of a boost in the US growth rate, higher oil prices resulting from conflicting output cuts will make it impossible for the Fed to maintain a stable monetary policy in May.
The US Dollar Index (DXY) exceeded 102.70 due to the anticipation that the Federal Reserve (Fed) will continue to increase interest rates by 25 basis points (bps) to reach 5.00-5.25%. As a result, S&P500 futures contracts experienced a significant decline during early Asia, indicating a need for caution regarding the general appetite for risk. No information has been left out in this paraphrased text.
The Relative Strength Index (RSI) (14) has entered a descending range between 20.00-40.00, indicating that Gold must experience a decline in order to maintain its upward momentum. No information has been left out in this paraphrased text.
The US Dollar Index (DXY) exceeded 102.70 due to the anticipation that the Federal Reserve (Fed) will continue to increase interest rates by 25 basis points (bps) to reach 5.00-5.25%. As a result, S&P500 futures contracts experienced a significant decline during early Asia, indicating a need for caution regarding the general appetite for risk. No information has been left out in this paraphrased text.
The Relative Strength Index (RSI) (14) has entered a descending range between 20.00-40.00, indicating that Gold must experience a decline in order to maintain its upward momentum. No information has been left out in this paraphrased text.
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