The U.S. dollar had been on an uptrend in the previous weeks, which weighed on gold prices. However, Powell’s testimony caused bond yields to go up, which made the U.S. dollar retreat and gold prices to recover.
According to Fed Chair Jerome Powell’s remarks, interest rates are likely to continue to increase in the near future which could lead to a decrease in demand for gold as investors seek higher yielding investments. In addition, technical selling pressure is also contributing to the decline in gold prices.
If Powell’s outlook on the U.S. economy is pessimistic, it could cause investors to lose confidence in the dollar and seek out other investments such as gold. This increased demand for gold would push up its price and make it more attractive to investors, even after accounting for the weakened U.S. dollar.
This is because silver, platinum, and palladium are seen as relatively better investments than gold due to their industrial uses. This has caused investors to shift their investments away from gold and into those other metals, driving down the price of gold.
We know that whenever Mr. Powell came at that time market was highly volatile.
Yesterday as per the data@ 14:00 GMT,» Fed Chair Powell Testifies
We have given a signal for the trade.
BUY XAUUSD
Price will recover on today’s Powell Testifies God willing
Level – 1935-1930|1920-1915
TP-1950/1965
SL-5 pts
From the first SL hits due to high volatility in the market but precisely trade activated from 2nd level 1920-1915 and performed:
1919 – 1938 = 19 points gain.
If we consider 5 points, SL for the first entry still has good profit from the level which 14 points.
Today also, we have given a signal for the trade only on the BUY side for the work as per the data@ 14:00 GMT, where Mr. Powell will return and can see a big move in GOLD.
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