The European Central Bank (ECB) has raised interest rates by 25 basis points, marking its tenth consecutive rate hike since July 2022 and bringing the total increase to 450 basis points. The ECB is primarily concerned about high inflation levels, both current and projected, with concerns extending into the future.
XAU/USD: strong signals to buy gold
2019-11-11 • Updated
BUY 1237 SL 1222 TP1 1267 TP2 1287 TP3 1308
BUY 1205 SL 1190 TP1 1235 TP2 1245 TP3 1267
On the daily chart of XAU/USD, a retest of the upper boundary of the previous consolidation of 1,185-1,215 supported bulls. To continue the upward movement to the 161.8% target of the “Crab” pattern, the need to break the resistance at 1,245.
On H1, a combination of “Three Indians” and 1-2-3 patterns will increase risks of the fall, if the pair breaks the support at 1,212. However, a pullback won’t be deep. The “Wolfe waves” pattern signals that.
The upcoming August inflation data may send mixed signals. The 12-month headline inflation rate is expected to rise to 3.6%, causing concerns for the Biden administration. However, core inflation, which excludes food and energy prices, is projected to decrease to 4.3%, aligning with the Federal Reserve's goals. Past price trends influence both figures, so looking at recent data for a more accurate picture is crucial.
The odds of a final interest rate hike by the US Federal Reserve (Fed) this year have dropped after US job openings hit their lowest levels since early 2021. This has led to a correction in the US Dollar as traders reduced their bets on further rate hikes.
The past several weeks have been a real triumph for the bulls in the oil market. The Brent spot price grew by 8.5% during the last month.
Gold prices are rising for three consecutive days ahead of the Federal Reserve (Fed) interest rate decision, which is expected to remain unchanged due to declining inflation and a positive economic outlook. Investors are keen on the Fed's interest rate guidance, fearing a hawkish stance that could trigger market risk aversion.
Amid concerns of a Chinese economic slowdown, reports of declining investment often overlook China's efficient investment strategy in emerging sectors for long-term growth. China has taken measures to stabilize foreign and private sector investments, like reducing the reserve requirement ratio to boost investor confidence.