Huitong, May 3 / PRNewswire-FirstCall-Asianet /-- after the Federal Reserve raised interest rates, gold prices are at an inflection point, as market sentiment improves and safe-haven demand falls, said Joaquin Monfort, Europe editor of FXStreet.
Joaquin Monfort, editor of FXStreet Europe, said gold prices were at an inflection point after the Fed raised interest rates, as gold prices fell due to improved market sentiment and reduced demand for safe havens.
Montfort said: "at the Federal Reserve on WednesdayCtrcrashteamracingswitchGold prices surged more than $30 an ounce after a general easing trend was adopted at the May policy meeting. Gold bulls pushed gold higher after the Fed decided to keep interest rates unchanged and slow the pace of reducing its holdings of US Treasuries, a moderate dovish move at a time when the Fed loosened its quantitative tightening. "
However, he pointed out that FOMC also added hawkish language to its latest statement, saying that "in recent months, there has been a lack of further progress in achieving the committee's 2 per cent inflation target."
"in his prepared speech, Powell did not mention interest rate cuts this year, and in the question and answer session, he avoided the question of whether the Fed will still cut interest rates in 2024," Montfort said. However, while the overall conclusion is that interest rates will not fall any time soon, further rate increases are not under consideration. "
On the technical side, Monfort said spot gold "has reached the minimum requirement to meet the bearish target moving price pattern after hitting the final C-wave target of $2286 at 0.681 Fibonacci. This suggests that prices are likely to rise.
He further explained that the movement pattern of the measurement was made up of three waves, which were jagged. " The end of the final C wave can be estimated according to the length of the A wave. Its length is usually equal to A, or the Fibonacci 0.681 ratio of A.
In terms of direction, gold is currently in no man's land, says Mr Montfort. He wroteCtrcrashteamracingswitchIf gold falls below the $2285 Fibonacci target low of $0.681, you will need to confirm a further downward target of $2245 ($1.000 or $1.000). Or, breaking through the moving average cluster and the B wave peak of about $2350 may usher in a new and more bullish environment. " At that time, the gold price may test the high of $2400 again. "
'The medium-and long-term price trend for gold is going higher, 'Mr. Montfort said.
Spot gold continued to fall in intraday trading on Thursday, hitting an intraday low of $2285.54 an ounce shortly after 9: 50 a.m. et. At the time of this writing, Bitcoin's latest trading price was $2301.72, down 0.72% in intraday trading.