Gold Recovers After Pressure from Fed's Hawkish Signal
Gold prices rose 1% on Thursday (June 18) to $4,298.48 per ounce, recovering some of the sharp losses from the previous session after the Federal Reserve signaled a potential interest rate hike this year. Gold's gains were also supported by falling oil prices after the US and Iran released the text of an interim agreement extending the ceasefire for 60 days to open up space for final peace negotiations.
Despite the recovery, gold's upside remains limited as the market is now pricing in a greater chance that the Fed will raise interest rates again. Nine of the Fed's 19 policymakers see the need for a rate hike this year, while the probability of a December hike has risen to 85% from 61% before the Fed's decision. Market focus will now be on the direction of oil prices, inflation expectations, and the Fed's further signals regarding its interest rate path. (asd)
Gold Price at the Time of This Analysis' Release: $4,304
- Buy if the price moves to $4,311
- Sell if the price moves to $4,298
Resistance 2: $4,329
Resistance 1: $4,316
Support 1: $4,290
Support 2: $4,277
Note: This article is analytical in nature and not a definitive reference. Please consider the impact of fundamental and technical developments on trading before making any investment decisions.
Source: Newsmaker.id
