Comment on Gold on May 24, 2022

 In yesterday's session, precious metal Gold did not correct much, but increased from 1842 to 1865 ($23) then dropped back to 1846, closing the day with a bullish candle around.  threshold 1853. Although the gaining force is not strong and is currently decreasing slightly, but the increasing force is still there and the option to wait to buy will be more feasible in today's session.

 - On the h4 time frame, after meeting the 1865 resistance, it is currently decreasing to 1850. In my opinion, the possibility of Gold falling further to the 1836-1842 price zone.  Here we consider the option to buy.

If you’re looking for a Stock Advisor, look no further but Money Life Research . They have divlersified expertise of over 15 years in international market trading.

Gold Price Analysis: XAU/USD benefits from softening buck, lower US yields, eyes test of 200-DMA

Gold is higher amid risk-off flows, a weaker buck and lower US yields.

XAU/USD is eyeing a test of its 200-DMA around $1,837 once again.

Spot gold (XAU/USD) prices are trading around $1,830 per troy ounce and once again eyeing a test of the 200-Day Moving Average around $1,837, having gained around $15 (or around 0.8%) thus far on the session. Risk-off flows in the global equity space have continued on Thursday after Wall Street’s worst day in nearly two years on Wednesday as investors continue to fret about softening global growth expectations at a time when major central banks (namely the Fed and to a lesser extent the BoE and ECB) appear intent on aggressive monetary tightening.

That is a toxic combination for equities and investors have begun seeking out safety in traditional safe-haven assets such as US bonds, even though US bond valuations have been hit hard in recent months by the hawkish shift in the Fed’s stance. Either way, on Thursday US yields (nominal and real) are lower and this is dampening the appeal of the US dollar as a safe-haven currency, with the likes of the Swiss franc and yen performing better.

The combination of lower yields, which reduces the “opportunity cost” of holding non-yielding gold, and a weaker US dollar, which reduces the price of USD-denominated commodities like XAU/USD for foreign buyers, is having the dual effect of supporting gold on Thursday. But whether these trends will continue, and whether XAU/USD will be able to break above its 200-DMA and out of its recent bearish trend, remains to be seen.

In recent weeks, buying USD dips and selling gold rallies has been a highly profitable strategy. As long as markets continue to believe that the Fed will follow through with as much monetary tightening as it has been promising, gold’s chances of rebounding back to the, say, upper-$1,800s look limited. Looking to the immediate future, a few tier two US data releases on Thursday in the form of the May Philadelphia Manufacturing survey, the weekly initial jobless claims report and April Existing Home Sales probably won’t move markets much. But the data will likely keep focus on the overarching themes of slowing growth, inflation and central bank tightening.

WANT TO DIRECT TALK OUR MARKET EXPERT CONTACT MONEY LIFE RESEARCH

Gold Down as Investors Continue Digesting Hawkish Powell Remarks

Gold was down on Wednesday morning in Asia, with the dollar continuing its retreat from a 20-year high and countering pressure from stronger Treasury yields. Investors also digested the latest hawkish comments from U.S. Federal Reserve Chairman Jerome Powell.

Gold futures were down 0.59% to $1,808.24 by 12:48 AM ET (4:48 AM GMT). The dollar, which normally moves inversely to gold, edged up on Wednesday but extended its decline into a fourth day. Investors’ increased appetites for riskier bets also took the edge off the safe-haven greenback's appeal.

Powell on Tuesday pledged that the U.S. central bank would hike interest rates as needed to curb sky-high inflation that he said threatened the foundation of the economy. The Fed has hiked its interest rate by three-quarters of a percentage point in 2022 to date and is on track to hike it again in half-percentage-point increments at its next two meetings in June and July 2022.

Philadelphia Fed President Patrick Harker will speak, and a G-7 finance ministers and central bankers meeting will take place, later in the day.

In Asia Pacific, Japan’s GDP contracted 1% year-on-year and 0.2% quarter-on-quarter in the first quarter of 2022, while Australia’s wage price index grew 2.4% year-on-year and 0.7% quarter-on-quarter.

Strong U.S. retail sales and factory data for April gave investor sentiment a boost, with consumers purchasing motor vehicles and frequenting restaurants, showing no signs of a slowdown in demand despite high inflation.

In other precious metals, silver and palladium edged up 0.2%, while platinum inched up 0.1%.

WANT TO DIRECT TALK OUR MARKET EXPERT CONTACT MONEY LIFE RESEARCH

GBP/USD rallies to near two-week high, eyeing 1.2500 ahead of US data/Fed's Powell

A combination of factors prompted aggressive short-covering around GBP/USD on Tuesday.

The British pound drew support from better-than-expected domestic employment figures.

A turnaround in the risk sentiment undermined the safe-haven USD and remained supportive.

Investors now eye the US Retail Sales for a fresh impetus ahead of Fed Chair Powell’s remarks.

The GBP/USD pair added to its strong intraday gains and shot to a nearly two-week high, around the 1.2480 region during the first half of the European session.

The British pound strengthened across the board on Tuesday after the UK Office for National Statistics reported that the number of people claiming unemployment-related benefits dropped by 56.9K in April. This was well below expectations for a fall by 38.8 and the 46.9K decline reported in the previous month. Adding to this, the ILO Unemployment Rate in the UK edged lower to 3.7% in three months to March from 3.8% prior.

Apart from this, the ongoing US dollar profit-taking slide from a two-decade high assisted the GBP/USD pair to build on its recent bounce from the 1.2155 region, or the lowest level since September 2020. Spot prices gained traction for the third successive day, taking along some short-term trading stops placed around the 1.2400 round-figure mark. The subsequent strength might have already set the stage for additional near-term gains.

That said, the UK-EU impasse over the Northern Ireland protocol could act as a headwind for sterling. UK Foreign Secretary Liz Truss will set out how the government plans to change the rules on goods moving between Britain and Northern Ireland and how it could override parts of the Brexit deal. Apart from this, the Bank of England's warning that the UK economy will slide into recession this year might cap gains for the GBP/USD pair.

Traders might also be reluctant to place aggressive bets and prefer to wait on the sidelines ahead of the key US macro data and Fed Chair Jerome Powell's appearance later this Tuesday. The US economic docket highlights the release of monthly Retail Sales figures. Meanwhile, Powell's remarks will be scrutinized for clues about the possibility of a 75 bps rate hike in June, which will influence the USD and provide a fresh impetus to the GBP/USD pair.

WANT TO DIRECT TALK OUR MARKET EXPERT CONTACT MONEY LIFE RESEARCH

Gold Price Forecast: XAUUSD slides further below $1,800, lowest since late January

Gold attracted fresh selling on Monday and dived to its lowest level since late January.

Signs of stability in the financial markets undermined demand for the safe-haven metal.

Break below the $1,800 accelerated the slide and has paved the way for further losses.

Gold weakened further below the $1,800 mark and dropped to its lowest level since late January during the first half of the European session. Spot prices

Following an early uptick to the $1,818 region, the XAUUSD came under some renewed selling pressure on Monday and prolonged its recent bearish trajectory witnessed over the past one month or so. Modest recovery in the global risk sentiment - as depicted by signs of stability in the equity markets - turned out to be a key factor that undermined the safe-haven gold.

Apart from this, the prospects for a more aggressive policy tightening by the Fed further contributed to driving flows away from the non-yielding yellow metal. The intraday downfall took along some short-term trading stops placed near the $1,800 mark. This further aggravated the bearish pressure surrounding gold, though a combination of factors helped limit losses.

Mounting global growth concern resulting from the war in Ukraine and China's zero-COVID-19 policy has spurred a rally in bonds, which saw the benchmark 10-year yields retreat from the recent peak of 3.20%. This, in turn, kept the US dollar bulls on the defensive and extended some support to the dollar-denominated commodity, allowing spot prices to rebound from the $1,787-$1,785 area.

That said, the lack of any strong follow-through buying and acceptance below the $1,800 round figure marks a bearish breakdown. Hence, a subsequent slide towards the $1,782-$1,780 area, or the 2022 low, en-route the next relevant support near the $1,753-$1,751 zone, remains a distinct possibility. Traders now look forward to the US Empire State Manufacturing Index for a fresh impetus.

WANT TO DIRECT TALK OUR MARKET EXPERT CONTACT MONEY LIFE RESEARCH

Gold Price Analysis: XAU/USD slides to $1810s, eyes annual lows after fourth successive weekly decline

Gold prices continue to trade with a negative bias in the upper $1810s as the buck remains resilient.

XAU/USD looks on course to post its fourth successive weekly decline and worst weekly performance since June 2021.

With the 200DMA broken, technicians are eyeing support in the form of annual lows around $1780 as the next target.

Spot gold (XAU/USD) prices continue to trade with a negative bias on the final trading day of the week, having hit their lowest levels in more than three months just above $1810 earlier in the session. At current levels in the upper $1810s per troy ounce, gold is trading about 0.2% lower and looks on course to post a weekly loss of around 3.5%, which would mark a fourth successive week in the red and gold’s worst weekly performance since June 2021.

The main driver of gold weakness this week has been the strength of the US dollar, with the Dollar Index (DXY) looking on course to close out the week close to multi-decade highs in the upper 104.00s. A stronger US dollar makes USD-denominated commodities like XAU/USD more expensive for international buyers.

The buck’s resilience on Friday comes despite a rebound in risk appetite which has seen stocks and crypto rally, arguably burnishing gold’s safe-haven appeal. Price action in US bond markets has also been unfavourable for the precious metal this week. While nominal yields (though higher on Friday) look set to end the week substantially lower, real yields are little changed.

That means lower inflation expectations (to be exact, 10-year breakevens have fallen over 20 bps this week to under 2.70%, their lowest since early March), implying a reduced demand for inflation protection. This hurts gold, given the asset is often seen as a hedge against inflation.

Fed chair Jerome Powell’s remarks on Thursday didn’t seem to rock the boat much. He reiterated that he sees 50 bps rate hikes at upcoming meetings as appropriate. Looking ahead on Friday, gold traders will be watching the release of the US University of Michigan Consumer Sentiment survey for May at 1500BST for insights as to how US consumers are holding up in the face of still sky-high inflation.

Any fresh commentary from Fed speakers that might move the needle regarding tightening expectations would also be worth noting. With XAU/USD having broken below its 200-Day Moving Average on Thursday, many technicians predict further downside towards annual lows in the $1780 area.

WANT TO DIRECT TALK OUR MARKET EXPERT CONTACT MONEY LIFE RESEARCH

USD/CHF slides further below 0.9900 mark amid weaker USD, focus remains on US CPI

USD/CHF corrected sharply on Wednesday and snapped a four-day winning streak.

Retreating US bond yields prompted some USD profit-taking and exerted pressure.

The risk-on mood might undermine the safe-haven CHF and limit any further losses.

The focus remains glued to the release of the latest US consumer inflation figures.

The USD/CHF pair added to its intraday losses and dropped to a fresh daily low, around the 0.9870 area during the first half of the European session.

The pair witnessed heavy selling on Wednesday and snapped a four-day winning streak to its highest level since May 2019, around the 0.9975 touched the previous day. The ongoing retracement slide in the US Treasury bond yields forced traders to lighten their US dollar bullish bets. This, in turn, was seen as a key factor that exerted downward pressure on the USD/CHF pair.

The downside, however, seems limited amid a generally positive tone around the equity markets, which tends to undermine the safe-haven Swiss franc. Apart from this, the prospects for a more aggressive policy tightening by the Fed should help limit the downside for the buck and lend support to the USD/CHF pair, warranting caution before placing fresh bearish bets.

The Fed is widely expected to tighten its monetary policy at a faster pace to combat stubbornly high inflation. In fact, the markets are pricing in a 200 bps rate hike for the rest of 2022 amid concerns that China's zero-covid policy and the war in Ukraine would result in tight global supply chains. This could push already elevated consumer prices even higher.

Hence, the focus will remain glued to the US CPI report, due for release later during the early North American session. The data could influence the Fed's tightening path, which, in turn, would influence the near-term USD price dynamics. Hence, it will be prudent to wait for strong follow-through selling before confirming that the USD/CHF pair has topped out.

WANT TO DIRECT TALK OUR MARKET EXPERT CONTACT MONEY LIFE RESEARCH