It rose in trading today, Wednesday, about $1884 an ounce, by 0.65%, after Jerome Powell, Chairman of the Federal Reserve, and shares rose.
The US dollar fell in today’s trading, energy stocks rose in Europe, while US stock futures fell.
In Asia, the stock index rose, with Australian and South Korean stocks gaining, while Chinese stocks and US bond yields fell.
Federal Reserve Chairman Jerome Powell reiterated the need for more rate hikes if the labor market remains strong and maintained that interest rates must remain constant to fight inflation.
Jerome Powell’s comments were more hawkish than his previous rhetoric after the Federal Reserve raised interest rates by a quarter of a percentage point last week.
Later in the day, New York Fed President John Williams will speak, followed by his colleague Michael Barr, two of the more hawkish rate hikers.
Gold price settled today above the level of $1880 an ounce, and it is still in a bearish trend in the short term, with the stability of the technical level of 1920.
Significant gains from last Thursday to Monday of the current trading week. I still see that the dollar has reached oversold levels and that gains are expected in the coming days.
Today, the dollar index is trading down by 0.2%, near the level of 103.20 points, and is likely to weaken slightly towards 102.50.
The dollar settled below the 50-day simple average, after forming a doji candle. It is expected that we will witness a slight decline before the expected rise towards 106.50, the convergence of the technical level of the 200 and 50 day averages.
From the daily gold price chart below, gold rose slightly. After falling more than 2% last Friday after the jobs report.
Gold price fell and broke the shown bullish trend line. We are likely to witness a rise again towards $1896, and perhaps 1905, the important resistance level.
I will look for an opportunity to sell from those levels, targeting the $1824 level, with a stop loss at 1925.
