Gold Price Outlook: What to Expect After Fed Chair Jerome Powell’s Speech
As a top investment manager, it’s crucial to keep an eye on the latest developments in the gold market. Here’s a breakdown of the current situation and what to anticipate following Fed Chair Jerome Powell’s upcoming speech.
Current Market Trends
- Gold price is hovering near a two-month low around $2,560 as buyers await Powell’s speech for potential market impact.
- The US Dollar and Treasury yields are on the rise, fueled by positive sentiments surrounding Trump’s trade policies.
- Defending the 100-day Simple Moving Average (SMA) near $2,545 is crucial for gold buyers, especially with the daily Relative Strength Index (RSI) signaling bearish momentum.
Key Market Insights
Gold price has been on a downward trajectory for the past five days due to strong demand for the US Dollar and rising Treasury bond yields. Despite in-line US Consumer Price Index (CPI) data for October, the market remains focused on Powell’s speech and Fed policymakers’ comments.
The latest US CPI figures showed a 2.6% annual growth in October, slightly higher than the previous month. Core CPI remained steady at 3.3%, meeting expectations. Fed officials are cautious about inflation outlook, hinting at a potential interest rate cut in December.
While market expectations for a rate cut are high, gold buyers are struggling to capitalize on dovish Fed sentiments as the USD continues to strengthen. Powell’s speech on Thursday will provide insights into the central bank’s future monetary policy decisions.
Technical Analysis and Price Forecast
On the daily chart, gold price broke below the $2,600 level, signaling further downside potential. The RSI is approaching oversold levels, adding to the bearish sentiment.
- Immediate support lies at the 100-day SMA and the September 18 low near $2,545.
- A break below this support could lead to a downtrend towards the $2,500 level.
- If gold attempts a rebound, it will face resistance at $2,600 and $2,619.
- The 50-day SMA at $2,651 will act as a strong resistance level for gold buyers.
Stay Informed: Economic Indicator
Don’t miss Fed Chair Powell’s speech, a critical event that could impact the financial markets. Powell, appointed by President Trump, plays a key role in shaping the Fed’s policies.
Next Release: Thursday, November 14, 2024, at 20:00
Frequency: Irregular
Source: Federal Reserve
Stay tuned for more economic data and Fed official speeches, as they will provide further insights into the market’s direction.