As of 4:55 pm, EDT April gold futures were $ 8.80, down 0.46% on the day and fixed at $ 1920.90. Spot gold is currently trading at $ 1921, down $ 14.50, or 0.75%. The decline in precious metals today may be directly due to investors’ reaction to Chairman Powell’s speech. In a speech at the National Association for Business Economics yesterday, Powell expressed a far more hawkish attitude regarding rate hikes to combat spiral-level inflation. His speech speculated that the Federal Reserve was much more aggressive about future rate hikes than previously announced.
At the last FOMC meeting, the Federal Reserve Board announced plans to raise interest rates by 1/4% at each of the remaining six FOMC meetings this year. But yesterday, he opened the door to a ½% rate hike when he said: In particular, if we decide that it is appropriate to act more aggressively by raising the federal funds rate by 25 basis points or more at one or more meetings. “
The Federal Reserve has maintained a dual mission of price stability and maximum employment. Last year, the Fed focused on maximum employment rather than price stability to support economic recovery. As a result, inflation remained at its highest level in 40 years, with the consumer price index rising to 7.9% in February. Inflation became so hot in January 1982.
Powell’s statement yesterday clearly shows that they are currently more focused on price stability rather than maximum employment. This is the heart of the Federal Reserve, which focuses on maximum employment rather than price stability, which characterizes the Fed’s attitude last year.
The fall in the nominal price of gold today is about $ 8 rather than a big sellout, and concerns over geopolitical tensions caused by Russia’s invasion of Ukraine and the highest level of inflation in 40 years continue to keep gold prices. It shows that we strongly support it.
On a technical basis, based on the current 50-day moving average, Gold has $ 1920 minor support per ounce, $ 1895 to $ 1900 support per ounce, and $ 1879 major support. Resistance price points start at $ 1944 based on a 21-day moving average, and the $ 1965 major resistance is based on previous price highs and a 38.2% Fibonacci retracement. The dataset used for Fibonacci retracement starts at $ 1781 and ends at $ 2078.
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