08 August
Gold and silver market
Gold prices faced downward pressure on Monday following Federal Reserve Governor Michelle Bowman’s indication that further interest rate hikes might be necessary to control inflation.
In remarks prepared for a “Fed Listens” event in Atlanta, Bowman reiterated comments she had previously made to a banking group on Saturday. She expressed her support for the recent interest rate increase due to ongoing elevated inflation.
This week’s focus will be on the U.S. Consumer Price Index (CPI) data scheduled for Thursday, which could provide more clarity on the Federal Reserve’s policy direction.
The XAU/USD currency pair is currently trading around a Fibonacci level, specifically the 61.8% retracement of the rally between $1,902.62 and $1,987.40. Technical analysis on the daily chart suggests a downside risk, as indicators have continued to decline within negative territory, hitting new one-month lows. Simultaneously, the pair remains below its 20 and 100 Simple Moving Averages (SMAs), lacking clear directional momentum.
Analyzing the 4-hour chart, a neutral-to-bearish outlook is observed as XAU/USD remains below all its moving averages. The 20 SMA acts as intraday resistance. Technical indicators on this timeframe show indecision: the Momentum indicator hovers near its 100 line without a clear direction, and the Relative Strength Index (RSI) is around 40.
– Nitin Kedia
