FED chairman Jerome Powell has acknowledged that inflation is moderating, but continuing price pressure remains a concern. Traders are now closely monitoring of upcoming US economic data, including weekly unemployed claims, the Philly Fed Manufacturing Index and the existing home sales, for further indications about the policy direction of the Central Bank.
Gold profits on economic and commercial uncertainty
Apart from the monetary policy, the concern about global trade policy contributes to the power of Gold. The recent decision of the BIDEN administration to maintain 25% rates on steel and aluminum import has increased the fear of disruptions of the supply chain and a slower economic growth. Uncertainty about trade relationships, especially at China, has also fueled the demand for safe haven.
Analysts note that applied historically from periods of economic and policy uncertainty. “With inflation problems persistent and central banks that are confronted with difficult rate decisions, investors turn to gold as a cover against potential economic volatility,” said Chris Wong, FX strategist at OCBC Bank.
Geopolitical tensions stimulate the demand for safe haven
Geopolitical risks continue to support Gold’s meeting. Increased tensions in several regions, in particular in Eastern Europe and the Middle East, have driven investors in the direction of safe port activa. Although diplomatic efforts are underway, uncertainty about energy markets and potential disturbances of the supply chain remain an important care.
Elsewhere, discussions between large central banks, including the Bank of England and the Swiss National Bank, are closely monitored for possible shifts in monetary policy. These decisions can influence the global market sentiment, which influences gold prices in the short term.
Short -term prediction
Gold remains bullish above $ 3,042, with resistance at $ 3,058. A break higher could push the prices to $ 3,074, while a decrease in lower than $ 3,042 can cause profitable in the short term.