Commodities Analysis and Opinion

Hawkish Fed Commentary Pushes Gold Back Below $1,900

2023.09.28 04:38

MarketPulse

  • Hawkish Fed speak continues to pressure gold
  • Two key technical support levels broken today
  • Gold trading at a six-month low

continues to drift lower after breaking below $1,900, a key area of support in recent weeks.

The yellow metal had been range-bound between $1,900 and $1,950 around the major central bank meetings this month and it would appear a hawkish Fed when others have adopted a more neutral tone has pushed it over the edge.

The has been charging higher over the last week and weighed heavily on gold. It’s not looking good for the yellow metal though, with the insistence that rates in the US could rise again and stay there for longer far from ideal.

A Bearish Breakout for Gold

In the last 24 hours, gold hasn’t just broken below the 200/233-day simple moving average band, it’s also broken the August lows in what looks quite a bearish development.

XAU/USD-Daily Chart

Source – OANDA on Trading View

It’s now trading at its lowest level since March and traders will be wondering just how low it can go. The next level that stands out is $1,860 where we’ve seen it run into support and resistance on numerous occasions in the past.

But today’s move may suggest a deeper correction is on the cards, especially if the Fed is going to maintain this hawkish position while other central banks pivot to something more neutral.

Original Post

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 81,727.90 2.67%
ethereum
Ethereum (ETH) $ 1,885.72 1.02%
tether
Tether (USDT) $ 0.999983 0.00%
xrp
XRP (XRP) $ 2.27 0.73%
bnb
BNB (BNB) $ 583.28 1.70%
solana
Solana (SOL) $ 124.96 1.32%
usd-coin
USDC (USDC) $ 1.00 0.00%
cardano
Cardano (ADA) $ 0.703929 4.33%
dogecoin
Dogecoin (DOGE) $ 0.167512 2.56%
tron
TRON (TRX) $ 0.225318 1.27%
staked-ether
Lido Staked Ether (STETH) $ 1,883.08 1.08%
lombard-staked-btc
Lombard Staked BTC (LBTC) $ 82,872.20 0.10%
pi-network
Pi Network (PI) $ 1.67 2.59%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 81,601.86 2.57%
leo-token
LEO Token (LEO) $ 9.71 0.01%
chainlink
Chainlink (LINK) $ 13.21 1.65%
stellar
Stellar (XLM) $ 0.273764 3.58%
usds
USDS (USDS) $ 1.00 0.05%
hedera-hashgraph
Hedera (HBAR) $ 0.188588 5.52%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,253.28 1.23%
avalanche-2
Avalanche (AVAX) $ 18.70 1.98%
shiba-inu
Shiba Inu (SHIB) $ 0.000012 1.25%
the-open-network
Toncoin (TON) $ 2.81 2.63%
sui
Sui (SUI) $ 2.19 4.74%
litecoin
Litecoin (LTC) $ 88.93 2.57%
bitcoin-cash
Bitcoin Cash (BCH) $ 327.81 7.07%
mantra-dao
MANTRA (OM) $ 6.33 2.41%
polkadot
Polkadot (DOT) $ 4.03 0.41%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.02%
weth
WETH (WETH) $ 1,886.70 1.13%
binance-bridged-usdt-bnb-smart-chain
Binance Bridged USDT (BNB Smart Chain) (BSC-USD) $ 0.999715 0.11%
bitget-token
Bitget Token (BGB) $ 4.20 0.56%
hyperliquid
Hyperliquid (HYPE) $ 12.74 4.50%
whitebit
WhiteBIT Coin (WBT) $ 28.18 1.82%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,003.70 1.16%
monero
Monero (XMR) $ 207.53 1.16%
uniswap
Uniswap (UNI) $ 5.92 0.33%
susds
sUSDS (SUSDS) $ 1.04 0.10%
dai
Dai (DAI) $ 0.999932 0.01%
near
NEAR Protocol (NEAR) $ 2.61 0.21%
aptos
Aptos (APT) $ 5.15 0.65%
pepe
Pepe (PEPE) $ 0.000007 3.35%
ethereum-classic
Ethereum Classic (ETC) $ 17.91 0.09%
internet-computer
Internet Computer (ICP) $ 5.48 0.28%
ondo-finance
Ondo (ONDO) $ 0.834453 4.90%
gatechain-token
Gate (GT) $ 20.33 0.78%
okb
OKB (OKB) $ 41.69 0.12%
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 81,723.90 2.78%
aave
Aave (AAVE) $ 164.80 5.32%
mantle
Mantle (MNT) $ 0.722354 4.04%