From TradingView · · 1m 10s
Gold Prices Drop on Rally
Gold falls as Fed rate hike nears.
In brief
Gold falls as Fed rate hike nears. Gold prices drop after Fed rate hike expectations and Middle East tensions limit gains. Originally reported by TradingView.
Gold Prices Edge Higher
Gold prices edged higher on Wednesday, currently trading near $4,340.
Fed Rate Hike Expected
The Federal Reserve is expected to raise interest rates by 25 basis points at this meeting.
Market Focus Shifts
Market focus has shifted to updated economic projections (including the "dot plot") and the press conference by Chair Kevin Warsh.
Inflation and Dollar Strength
Risks of energy-driven inflation support expectations for further Fed tightening, a global bond sell-off has pushed the 10-year US Treasury yield above 5% (a high since 2007), and escalating tensions in the Middle East are bolstering the US Dollar Index.
Technical Analysis
Technically, gold has peaked and pulled back on the daily chart, falling below the 20-day moving average (MA20); the short-term bullish structure has been compromised.
Price Action
On the four-hour chart, bulls and bears are locked in a tug-of-war; heavy selling pressure follows rebounds, and bullish counter-attacks lack sufficient strength, leaving the market in a state of fluctuation as it seeks a support base.
The big picture
Gold prices drop after Fed rate hike expectations and Middle East tensions limit gains.
