XAU/USD is likely to decline sharply in the near future.
“The Federal Open Market Committee (FOMC) is committed to achieving a monetary policy stance that is restrictive enough to reduce inflation to 2% over time; We are not confident that we have reached such a position,” Mr. Powell said in his opening speech to a policy panel at the 24th annual Jacques Polak Research Conference, organized by the International Monetary Fund. position.
The Fed chief acknowledged that US inflation has fallen over the past year but said it was still "far above our 2% target", Powell said, but signaled the Fed was not ready to accept that inflation was sustainable low level. Inflation “has given us some fake news,” he added.
However, the Fed chief balanced his remarks by reiterating that the Fed will continue to "move carefully" in future policy decisions.
A cautious approach, he added, would allow the Fed to “address both the risk of being misled by a few months of good data and the risk of over-tightening.”
On the daily chart, gold continues to decline towards the psychological level of $1,950. A drop below $1,950 could push prices back towards $1,900 but gold would have to overcome some previous support.
The Fed chief acknowledged that US inflation has fallen over the past year but said it was still "far above our 2% target", Powell said, but signaled the Fed was not ready to accept that inflation was sustainable low level. Inflation “has given us some fake news,” he added.
However, the Fed chief balanced his remarks by reiterating that the Fed will continue to "move carefully" in future policy decisions.
A cautious approach, he added, would allow the Fed to “address both the risk of being misled by a few months of good data and the risk of over-tightening.”
On the daily chart, gold continues to decline towards the psychological level of $1,950. A drop below $1,950 could push prices back towards $1,900 but gold would have to overcome some previous support.
💲TP1 1960
💲TP2 1955
🔴 SL 1972