fundamental News - XAUUSD

Gold prices took it on the chin, declining more than 1% on Tuesday after sliding 1.8% Monday. The dollar consolidated but U.S. short-term treasury yields continued to rise as the markets pondered the decision by President Biden to renominate Fed Chair Powell. Eurodollar futures contracts now show a 50% chance that the Fed will tighten interest rates in May of 2022 and a second hike by the end of 2022.

The American public has spoken and they want the President of the United States to reduce costs, across the spectrum. President Biden introduced his nominations for Federal Reserve Chair and Vice-Chair on Monday and in each of their speeches, they mentioned inflation. The Fed is now poised to fight inflation, and the market is willing to help them along by raising rates immediately.

Technical analysis
Gold prices moved lower, breaking down through all three major simple moving averages 50,100 & 200 on the daily chart around at $1,792 Support, which is also sitting above the upward sloping trend line. The bull will be aggressively defending these levels.

Medium-term momentum has turned negative as the MACD (moving average convergence divergence index) generated a crossover sell signal. This scenario occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line. Short-term momentum is also negative as the fast stochastic recently generated a crossover sell signal.

expectation today: neutral