24K99 News Wednesday (May 22) early trading in Europe, the price of gold fell to $2416, the price of gold once hit $2411 in Asia. Minutes of the Federal Open Market Committee (FOMC) meeting will be unveiled as the Fed maintains hawkish pricing with long-term high interest rates to suppress precious metal bulls. Market analysts warn that if the gold price falls below the $2410 round mark, there may be a sharp sell-off.
Gold fell back to $2411 in Asian trading on continuing concerns about high interest rates in the US. The minutes of the Fed's late April meeting, released later on Wednesday, are expected to provide more insight into future interest rate movements.
Although interest rates remained stable at the recent meeting, Federal Reserve Chairman Colin Powell hinted that interest rates could be cut in 2024. However, this sentiment is not consistent among Fed officials, and many need stronger evidence that inflation is falling to support interest rate cuts.
This hawkish stance gives a boost.3betpokerThe dollar increases the opportunity cost of holding non-income assets such as gold.
The Fed's hawkish rhetoric put downward pressure on gold prices, with committee members stressing the need for more convincing inflation data to consider cutting interest rates, suggesting that high interest rates could persist, a position that supported the dollar and further weighed on gold prices.
In spite of the recent fall in gold prices, renewed trade tensions between China and the US and continuing geopolitical problems in the Middle East are likely to ease downside risks to gold prices, which maintain part of the demand for gold as a safe haven.
Despite high interest rates, gold is supported by demand from central banks and Asian buyers, as well as geopolitical tensions.
Traders are closely watching the release of the minutes of the FOMC meeting and the speeches of Fed officials, including Fed governor Christopher Waller and Atlanta Fed chairman Rafael Raphael Bostic, for further clues on interest rate policy.
The United States recently announced tariffs on a variety of Chinese products, while China is considering raising tariffs on imports of large-engine cars. Trade tensions add another layer of complexity to the economic outlook, which could affect market sentiment and gold prices.
In the short-term outlook, gold is still bullish above $2410, with potential upward momentum. However, falling below that level could trigger a sharp fall to $2400.
Gold technical analysis
FXEmpire analyst Arslan Ali said the golden pivot point is at 2411.3betpoker.14 dollars. The main resistance levels are $2420.20, $2430.80 and $2448.96, while support levels are $2402.41, $2389.63 and $2373.74.
The 50-day moving average is $2388.69 and the 200-day average is $2329.92.
Technically, gold has completed a 50 per cent Fibonacci pullback around $2411. The shape of candles above this level may indicate an upward trend.
However, bearishness swallowing candles and falling below the $2420 upward trend line may herald a downtrend. The withdrawal of Fibonacci above 50 per cent could cause gold to rise to 61.8 per cent of its level around $2400.
Gold remains bullish above $2410, but falling below that level could trigger a sharp sell-off.
