There is still a chance for Gold
Last week, the US dollar strengthened and made gold’s value become weakened. Experts are concerned that this week the $1,700 mark is value for gold.
During the week, gold’s price dropped by more than 2%. Gold made a loss for the fifth week in a row, which hasn’t happened in years. On an annual basis, gold’s price has only dropped by around 7%.
In the coming days, gold might drop as low as $1,600 or $1,550. The chance of Gold damage is still high. The market’s exploration of the Fed’s new expectations and the strengthening US currency will take some time.
However, according to experts, there is a possibility of a counter-trend for gold this week, which may allow for a gold price increase, even just for a slight bit.
Fed entering “Blackout” Phase
The market anticipated that the Fed will raise the rates again by this week.
However, the Fed is not allowed to discuss any topic of interest rate and speak anything to the public this week as they are entering a phase called “Blackout”.
This indicates that there won’t be any new information will be released by the Fed regarding interest rates this week.
There is immediate support at $1,695, and if it is crossed, it will go up to $1,679 and then $1,650.At $1,725 there is immediate “resistance,” which if it is successfully passed, will go up to $1,750 or eventually $1,800.
The possibility of another Crude Oil dropped
Last week, Crude oil prices continued to drop from Monday to Thursday.
The price dropped to $101 on Monday and to $94 on Tuesday. This led to concerns about a future slowdown in crude demand and a rise in crude oil production. But last Friday, it managed to rise to around $94.70 a barrel in the middle of recession fears.
However, it does not rule out the possibility of oil will be dropped again this week due to rising inflation.
Despite all these falling costs, the Federal Reserve is still very likely to raise interest rates because of the extremely high inflation rate.