- Inflation, growth and contraction are all covered by Fed Chairman Powell.
- Traders are reducing fishnet lengths, increasing shorts.
Gold has been stuck in retention habits in recent days, where recent risk-related risks have caused very little response to the precious metal. This week’s calendar is full of potentially market-affecting events and publications, but today FOMC the decision stands head and shoulders above all others. The levers of monetary policy are expected to remain intact, but a press conference following President Jerome Powell’s decision will guide the market’s mind and direction for the coming days and weeks. US growth remains robust – the first US GDP survey in Thursday ‘s first quarter is expected to pick up 8.6% – while the FOMC is likely to reiterate that current inflationary pressures are temporary. According to Friday’s June June PCE key announcement, annual inflation is expected to be 3.7%, up from 3.4% in May. One area where the Fed can change its current language / attitude is the bond-buying program, where any talk of cutting-narrowing-purchases sends US dollar higher, with negative consequences for the price of gold. However, a slightly more dovist FOMC would see the green slide slip lower, giving the precious metal a bid.
The daily schedule shows this gold has been tied for the past week, the price of support and resistance was $ 1,790 / oz. and $ 1,825 / oz. accordingly. Volatility has fallen to a one-year low, while three moving averages have blended without providing a clear direction. With the increased level of risk in the United States over the next three days, the precious metal may soon see a sharp reaction. Before making any trading decision, it may be wise to sit aside and let the risk events pass this week.
Gold Daily price chart (September 2020 – July 28, 2021)
Customer mood data show 80.45% of traders are net long and the ratio of long to short traders is 4.11 to 1. The number of traders in net length is 7.02% lower than yesterday and 3.24% lower than last week, while the number of traders is short 10.12% higher than yesterday and 31.39% higher than last week.
We usually take the opposite view of the mood of the crowd and the fact that the net length of traders indicates that gold prices may continue to fall.Traders are less than last week compared to last week. Recent mood swings warn that the current gold price trend may soon on the contrary, higher despite the fact that traders remain net long.
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