Rate cuts not likely, Gold zooms upwards
FED chair Powell talked Wednesday to the bumpy road ahead for inflation through 2024. Commenting on strong labour markets and economic growth, the underlying message is becoming pretty clear; “Until something breaks, we’re holding the ship steady at current interest rates”. With economists previously predicting that 2024 would hold 3 interest rate cuts, many are now retracting their comments and reducing their predictions to 1 cut this year at most.
Gold continues to zoom upwards while tensions in the Middle East escalate. With Iran being pulled into the spotlight earlier this week, all eyes and ears are now awaiting any kind of retaliation for the deaths of three commanders and four officers on Monday. The supreme leader of Iran Ayatollah Ali Khamenei has pledged to avenge the deaths of these officials. These Iranian deaths were the result of an Israeli precision air strike.
And Silver looks to be finally starting its own run, steadily creeping closer to its $30 USD psychological ceiling. Once it breaks through this, we may well see Silver reach new highs.
Next week we’ll see more CPI data revealed from the FED, which should give us all further insight towards potential rate cuts, or even additional rate hikes in the near future.
The US500 also just suffered one of its worst intra day losses this year, plummeting from 5260 to 5146 within the 24 hour trading period. The ASX200 is also looking dismal continuing its downward movement into a 4 day losing streak. With both sharemarkets looking shaky, bullion can only look more attractive to risk adverse investors.
Enjoy today’s charts and forecast.
Gold daily chart, with 200MDA
Silver daily chart, with 200MDA
US500, with 200MDA
ASX200, with 200MDA
Gold Futures Technical Analysis
Gold Futures monthly analysis continues to recommend a STRONG BUY with Weekly analysis a BUY signal.
Technical indicators - Monthly Projections
RSI(14) | Buy |
STOCH(9,6) | Buy |
STOCHRSI(14) | Overbought |
MACD(12,26) | Buy |
ADX(14) | Buy |
Williams %R | Overbought |
CCI(14) | Overbought |
ATR(14) | Less Volatility |
Highs/Lows(14) | Buy |
Ultimate Oscillator | Overbought |
ROC | Buy |
Bull/Bear Power(13) | Buy |
Summary for Monthly Forecast: Strong Buy
*Not financial advice, please DYOR prior to any investment decisions you make.
Author
Jaggards