Gold Analysis 21/05/24
Updated
As of May 2024, the inflation rate in the USA is around 3.4 Despite interest rate hikes by the Federal Reserve, inflation has not been entirely tamed, and there's still concern about potential economic slowdown or recession.
If interest rates continue to rise without effectively controlling inflation, it can lead to several economic consequences. High interest rates typically increase borrowing costs, which can slow down consumer spending and business investments, potentially pushing the economy toward a recession. This scenario can create a complex environment for gold prices. On one hand, higher interest rates often make non-yielding assets like gold less attractive compared to interest-bearing investments. On the other hand, if inflation remains high or geopolitical tensions escalate, gold might still see increased demand as a safe haven asset.
In essence, the impact on gold prices will depend on the interplay between these factors. If inflation persists despite higher rates, and if geopolitical uncertainties continue, gold could maintain its value or even rise. Conversely, if higher rates effectively curb inflation and economic stability improves, gold might face downward pressure
As conclusion we're now Still bullish with gold even with this drop i consider this as Correction wave , Impulsive Wave 3 has finsihed and now we're in Wave 4 could be Zigzag ABC waves , once we finishing this We should be ready for a new Higher Highs target which is 2483.271-2490.167 ,
im doing Buy Limit : [ 2405 -2400 ] & Buy limit [2395-2389] Total Risk 4% of the day splitted on these positions , SL would be at 2368
Please guys do your own propre risk management not a financial advice
Here are some of the news of yesterday :
🔴 Governor and Federal Reserve member Barr considers that the inflation reading in the first quarter was disappointing
It did not provide them with sufficient confidence to ease monetary policy
🔴 Barr from the Federal Reserve: Inflation data are disappointing and insufficient to ease monetary policy.
🔴 Federal Reserve Bank Chairman Cleveland Meister: Inflation will decline, witnessing fewer than three interest rate cuts in 2024.
If interest rates continue to rise without effectively controlling inflation, it can lead to several economic consequences. High interest rates typically increase borrowing costs, which can slow down consumer spending and business investments, potentially pushing the economy toward a recession. This scenario can create a complex environment for gold prices. On one hand, higher interest rates often make non-yielding assets like gold less attractive compared to interest-bearing investments. On the other hand, if inflation remains high or geopolitical tensions escalate, gold might still see increased demand as a safe haven asset.
In essence, the impact on gold prices will depend on the interplay between these factors. If inflation persists despite higher rates, and if geopolitical uncertainties continue, gold could maintain its value or even rise. Conversely, if higher rates effectively curb inflation and economic stability improves, gold might face downward pressure
As conclusion we're now Still bullish with gold even with this drop i consider this as Correction wave , Impulsive Wave 3 has finsihed and now we're in Wave 4 could be Zigzag ABC waves , once we finishing this We should be ready for a new Higher Highs target which is 2483.271-2490.167 ,
im doing Buy Limit : [ 2405 -2400 ] & Buy limit [2395-2389] Total Risk 4% of the day splitted on these positions , SL would be at 2368
Please guys do your own propre risk management not a financial advice
Here are some of the news of yesterday :
🔴 Governor and Federal Reserve member Barr considers that the inflation reading in the first quarter was disappointing
It did not provide them with sufficient confidence to ease monetary policy
🔴 Barr from the Federal Reserve: Inflation data are disappointing and insufficient to ease monetary policy.
🔴 Federal Reserve Bank Chairman Cleveland Meister: Inflation will decline, witnessing fewer than three interest rate cuts in 2024.
Trade active
Im Entering in Sells NOW GOLd TP1:2421.995
TP2:2419.334
TP3:2414.890
TP4 :2409.589
SL : 2434.19
Trade active
Closed in profit , Since this could be retest to drive up , 4H is soo scary :)Note
🏛 Fed Waller: He needs to see several more months of good inflation data before he feels comfortable supporting policy easing.Note
🏛 Fed Governor Waller: The 10-year Treasury rate has risen, and this is where you see potential tightening effects.Note
🏛 Fed Governor Waller: The possibility of a recession seems to have disappeared.Note
🏛 New York Fed President Williams:• Improving Wall Street culture is a long-term effort.
Note
You cant tell if price gonna continue pushing up , or just comes back down and drop way far to 2400-2405 or even maybe wat further to 2397-2391
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