Trading strategy at the beginning of the week, entry sell
Gold prices reversed and decreased because investors continued to take profits, as the market was preparing to receive new economic information, as well as preparing for the US Federal Reserve (Fed) to enter its first monthly meeting. 2024.
Experts predict that the US economy is about to release its 2023 report, with good growth expected and stable employment. When economic growth is good, stocks increase positively. The USD also increased. Investors in the world market previously gathered gold, but they returned to take profits to buy stocks as soon as possible. Therefore, gold as a capital reserve will decrease in price deeply in the future.
On Tuesday, the dollar strengthened and put pressure on gold as US Federal Reserve (Fed) Governor Christopher Waller made "hawkish" comments about cutting interest rates this year. According to Mr. Waller, the US is still far from the 2% inflation target, so the central bank should not rush to cut interest rates until it is clear that lower inflation will be maintained. Previously, many Fed officials, including Cleveland Fed President Loretta Mester, told Bloomberg TV that it was too early to loosen monetary policy in March. Comments from Fed officials showed that The Fed believes that interest rate cuts will come much later, most likely at the end of the second quarter of this year.
The report released Wednesday showed that retail sales in December increased 0.6% from the previous month. This strengthens the Fed's determination not to cut interest rates prematurely. However, gold reversed course Thursday as market attention turned to concerns about escalating geopolitical tensions. Safe haven demand has reduced pressure on interest rate expectations and helped gold increase slightly.
Experts predict that the US economy is about to release its 2023 report, with good growth expected and stable employment. When economic growth is good, stocks increase positively. The USD also increased. Investors in the world market previously gathered gold, but they returned to take profits to buy stocks as soon as possible. Therefore, gold as a capital reserve will decrease in price deeply in the future.
On Tuesday, the dollar strengthened and put pressure on gold as US Federal Reserve (Fed) Governor Christopher Waller made "hawkish" comments about cutting interest rates this year. According to Mr. Waller, the US is still far from the 2% inflation target, so the central bank should not rush to cut interest rates until it is clear that lower inflation will be maintained. Previously, many Fed officials, including Cleveland Fed President Loretta Mester, told Bloomberg TV that it was too early to loosen monetary policy in March. Comments from Fed officials showed that The Fed believes that interest rate cuts will come much later, most likely at the end of the second quarter of this year.
The report released Wednesday showed that retail sales in December increased 0.6% from the previous month. This strengthens the Fed's determination not to cut interest rates prematurely. However, gold reversed course Thursday as market attention turned to concerns about escalating geopolitical tensions. Safe haven demand has reduced pressure on interest rate expectations and helped gold increase slightly.
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