Gold punished by hawkish central bankers
Gold prices hit a three-month low in midday trading on Thursday in the US. Central banks are still focused on their monetary policies this weekend. This trend of falling prices is due to both reduced demand and the increasing attractiveness of government bonds as bond yields rise. In the end, gold for August dropped by $19 to $1,925.
The central bank of Norway increased its key interest rate by an additional 0.5% on Thursday. The Bank of England met today to discuss its monetary policy and raised its main interest rate by 0.5%. Meanwhile, Federal Reserve Chairman Powell testified before a US Senate committee today, following his remarks before a House committee on Wednesday.
Powell seemed hawkish and reiterated comments from the press conference after the FOMC meeting in mid-June. He reminded Congress that the Fed is concerned about inflation, which is currently much higher than the central bank's annual target of 2%. Powell also indicated that there could be two more interest rate hikes this year, without specifying the timing.
The central bank of Norway increased its key interest rate by an additional 0.5% on Thursday. The Bank of England met today to discuss its monetary policy and raised its main interest rate by 0.5%. Meanwhile, Federal Reserve Chairman Powell testified before a US Senate committee today, following his remarks before a House committee on Wednesday.
Powell seemed hawkish and reiterated comments from the press conference after the FOMC meeting in mid-June. He reminded Congress that the Fed is concerned about inflation, which is currently much higher than the central bank's annual target of 2%. Powell also indicated that there could be two more interest rate hikes this year, without specifying the timing.
✅Sell the $1,929-$1,926 range when the price hits the resistance area.
✖️Stoploss: $1,931.
AND ALWAYS REMEMBER WHAT YOU NEED TO DO IS MANAGE RISK. GOOD LUCK !!!