About 24% of global central banks intend to increase gold reserves in 2023. Rising inflation, geopolitical turmoil, and worries about interest rates are reasons to increase gold reserves.
US Inflation Jumped, Gold Keeps Rallying
- EUR/USD has dropped sharply to the low unseen since July 2020. The reason was the higher-than-expected US inflation figures that shocked investors as the annual Inflation Rate rocketed to the 31-year high of 6.2%.
- Concerns about inflation pressures reinforced expectations of interest-rate hikes in the US and pushed the USD up to a one-year high. A more hawkish outlook can press stocks that are near record highs these days.
- China’s Evergrande made an interest payment of $148 million on Wednesday, avoiding a default third time in a row. It has mildly improved the market sentiment and stopped the EUR/USD bears.
- Meanwhile, gold keeps rising! It has surged above $1850 for the first time since June. Will we see gold at $1900 soon?
- Australia has revealed poor labor data. Employment Change: -46.3K (forecast: 50.0K), Unemployment Rate: 5.2% (forecast: 4.8%). AUD/USD dropped initially but then reverse up.
Gold has broken above $1850! If it manages to overcome the next resistance level at the 50% Fibonacci retracement level of $1870, it may jump to the psychological mark of $1900. Support levels are $1845 and the 38.2% Fibo level of $1830.
AUD/USD is moving inside the ascending channel. It is getting closer to the lower line, so the reverse-up should occur soon. If it jumps above the 50- and 100-day moving averages of 0.7360, the way up to the next resistance level of 0.7450 will be open.
Greetings to a brand new week full of events, economic releases and US debt frictions. We are here to tell you everything you need to know!
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