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Gold: Current Position Could Attract Big Bulls

Published 06/17/2021, 01:52 PM
Updated 07/09/2023, 06:31 AM
XAU/USD
0.10%
GC
-0.04%

Undoubtedly, with the announcement of the Fed's monetary policy gold futures have witnessed a steep fall amid growing indecisiveness in forex markets. The Federal Reserve has disrupted the summer torpor that the markets had settled into by signaling on Wednesday that two rate hikes could be in the cards by the end of 2023, a year earlier than expected.

The central bank concluded its two-day policy meeting by keeping its interest rates and monthly bond purchases unchanged, as widely expected. But new projections saw 11 of 18 central bank officials point to two rate hikes of 25 basis points in 2023 that represented an abrupt change of thinking from the previous meeting when none of these officials look for hikes during that year.

Gold ftures have tested my first buying point at &1775 from where I would prefer to take a long position with a stop loss at $1732 with an immediate target at $1818. Undoubtedly, risk could remain higher but, I would prefer to be on the buy-side.
Gold Futures Daily Chart
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