fundamental News - XAUUSD
Gold prices were volatile in the US session on the back of the China
Evergrande risks fading over the horizon and the Federal Reserve turning
more hawkish. Evergrande agreed to settle interest payments on a
domestic bond on Wednesday. This has calmed contagion
risks in the bond and stock markets.
The Chinese central bank also injected cash into the banking
system, temporarily soothing fears of imminent contagion from the
debt-laden property developer. However, $300 billion in liabilities is
owed to countless banks, lenders, retail investors and
suppliers. This means any impact would be complex and uncertain. There
has been no mention of its plans for another bond payment on Thursday
and one next week. The situation remains fluid.
Meanwhile, the US dollar was seen as a good pick up opportunity as
the dust started to settle and markets came into line with a more
hawkish tilt at the Fed. November has been marked as the most likely
month for which tapering will begin. There is even
a 50% chance that a rate hike might come sooner than expected in 2022.
The price of gold has been volatile on Wednesday following the
Federal Reserve's interest rate decision that has just been released.
XAU/USD has rallied to a fresh high of $1,786.87 in a 1% move
between $1,769 and $1,787.87 so far. The FOMC statement gives rise to an
imminent taper announcement.
Gold price failed to break above into the bullish zone which is define by the 200-SMA at $1,785.20 on the 4-hourly chart.
Bearish zone range of resistance $1,785.20 to $1,745.00.
Bullish zone range of $1,785.20 to $1,835.00.
expectation today: bearish