Daily analysis
Gold climbed for the third consecutive day on Wednesday, setting a new one-week high. The escalation of tensions between Russia and Ukraine has exacerbated geopolitical concerns, and investors seek to avoid risks. Russian President Putin lowered the threshold for the use of nuclear strikes to deal with wider conventional attacks. While the price of gold rose, the US dollar also rebounded significantly on Wednesday, which limited the rise of gold to some extent. Last week, as the dollar index hit a new one-year high, gold suffered the largest single-week decline in more than three years. Two Federal Reserve directors expressed opposite views on the direction of U.S. monetary policy on Wednesday. Bowman said that in the past few months, the inflation rate has remained high and fluctuated horizontally, so the Federal Reserve needs to act cautiously. Cook expressed confidence in the continuous easing of price pressure. According to CME
For the FedWatch tool, traders believe that the possibility of the Federal Reserve cutting interest rates by 25 basis points in December is 55%, while the probability of lowering interest rates by another 25 basis points in January is only 15%.
According to the technical chart, the RSI and stochastic index have rebounded from the serious oversold area with the rebound of prices. If calculated by the cumulative decline in the month, the rebound of 38.2% and 50% will reach $2,633 and $2,662, and the expansion to 61.8% will be $2,692. The larger resistance is expected to be 2750, and the key target in the medium term is still the 2800 barrier that failed to break through last month. The closer support is estimated at $2,618 and 2,580, and the next level is estimated at $2,535.
For the FedWatch tool, traders believe that the possibility of the Federal Reserve cutting interest rates by 25 basis points in December is 55%, while the probability of lowering interest rates by another 25 basis points in January is only 15%.
According to the technical chart, the RSI and stochastic index have rebounded from the serious oversold area with the rebound of prices. If calculated by the cumulative decline in the month, the rebound of 38.2% and 50% will reach $2,633 and $2,662, and the expansion to 61.8% will be $2,692. The larger resistance is expected to be 2750, and the key target in the medium term is still the 2800 barrier that failed to break through last month. The closer support is estimated at $2,618 and 2,580, and the next level is estimated at $2,535.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.