XAU USD - Metal quotes are developing a downward trend
Investors are in no hurry to open new trading positions ahead of the publication of inflation statistics from the UK, as well as the speech of the head of the US Federal Reserve, Jerome Powell, who, as analysts hope, will outline the immediate prospects for monetary policy. So, some agency representatives said they were not opposed to another rate hike by 75 basis points, and a more conservative position still suggests an increase of only 50 basis points, after which a pause will be required to assess the measures taken.
Quotes of gold, traditionally protective assets, are supported by growing fears about a slowdown in the global economy. Also, the geopolitical risks associated with the development of a military conflict in Ukraine are not weakening yet, while the countries of the world are forced to deal with the consequences of a sharp increase in energy prices. Analysts are confident that rapid inflation on a global scale and a slowdown in economic growth can catalyze stagflation in the US economy, and the US Federal Reserve's measures to tighten monetary policy will be insufficient. It, in turn, will allow gold to regain investor interest and overcome the level of 2000.
An additional negative factor for the metal is the increase in the yield of US Treasury bonds amid expectations of further actions by the American regulator. As new signals for the asset, there is the talk about a possible restriction of Russian gold imports by European countries in the next sanctions packages from the EU. In particular, Denmark has previously announced such a possibility.
Resistance levels: 1843.37, 1857.27, 1869.49, 1878.84 | Support levels: 1823.09, 1800, 1775, 1752.87
Quotes of gold, traditionally protective assets, are supported by growing fears about a slowdown in the global economy. Also, the geopolitical risks associated with the development of a military conflict in Ukraine are not weakening yet, while the countries of the world are forced to deal with the consequences of a sharp increase in energy prices. Analysts are confident that rapid inflation on a global scale and a slowdown in economic growth can catalyze stagflation in the US economy, and the US Federal Reserve's measures to tighten monetary policy will be insufficient. It, in turn, will allow gold to regain investor interest and overcome the level of 2000.
An additional negative factor for the metal is the increase in the yield of US Treasury bonds amid expectations of further actions by the American regulator. As new signals for the asset, there is the talk about a possible restriction of Russian gold imports by European countries in the next sanctions packages from the EU. In particular, Denmark has previously announced such a possibility.
Resistance levels: 1843.37, 1857.27, 1869.49, 1878.84 | Support levels: 1823.09, 1800, 1775, 1752.87
