{"id":65194,"date":"2023-06-27T15:08:11","date_gmt":"2023-06-27T12:08:11","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=65194"},"modified":"2025-10-13T16:45:02","modified_gmt":"2025-10-13T13:45:02","slug":"gold-analysis-today-slight-bearish-tendencies","status":"publish","type":"post","link":"https:\/\/www.smartchinaeducation.com\/en\/gold-analysis-today-slight-bearish-tendencies\/","title":{"rendered":"Gold Analysis Today: Slight bearish tendencies"},"content":{"rendered":"\n

Gold\u2019s price continued to drop slowly<\/a> yet steadily, over the past week with the overall sideways motion picture changing. The slight gains of the USD in the past week seem to have activated gold\u2019s bears given also the recent financial releases and monetary policy events. In this report, we aim to shed light on the catalysts driving the precious metal\u2019s price, assess its future outlook and conclude with a technical analysis.<\/p>\n\n\n\n

Fed\u2019s hawkishness maintained<\/strong><\/h2>\n\n\n\n

Overall we note that the Fed\u2019s hawkish intentions seem to be maintained, signaling that the bank may not be over with monetary policy tightening. It was characteristic that Fed Chairman Powell in his testimony before Congress last Wednesday more or less confirmed that more rate hikes lay ahead and stated that \u201cInflation pressures continue to run high, and the process of getting inflation back down to 2% has a long way to go,\u201d. Furthermore, he reiterated that all FOMC policymakers expect that \u201cit will be appropriate to raise interest rates somewhat further by the end of the year\u201d, contradicting market expectations for rate cuts any time soon. The Fed Chairman cited the US employment market as being still tight despite some signs of easing. Overall the Fed Chairman maintain a clear hawkish tone in his testimony, yet at the same time did not add something new. Furthermore, during Monday\u2019s American session, New York Fed President Williams, stated yesterday that \u201cRestoring price stability is of paramount importance\u201d, potentially hinting that the bank may not be done with raising interest rates just yet. Should the bank\u2019s hawkishness be maintained or even be more acute in the coming week, we may see the USD getting some support, while such a development may set downward pressure on gold\u2019s price should the negative correlation of the USD with gold\u2019s price be in effect.  <\/a><\/p>\n\n\n\n

The role of US Yields and the next tests<\/strong><\/h2>\n\n\n\n

On second note, we would also note the course of US yields as over the past weekend, yields tended to be on the rise, yet since Monday have corrected lower. Should we see US yields restart and maintain a clear upward trajectory, both for medium and longer-term bonds, we may see gold prices being set under selling pressure as bonds would become more attractive investment destinations given that gold is not interest-bearing. We note as the next big test for gold prices the planned speech of Chair Jerome Powell on Wednesday. Should the Fed Chairman sound more hawkish than the market\u2019s expectations we may see the USD gaining while on the flip side that may weigh on gold\u2019s price given that the negative correlation of the USD and gold prices is maintained. Furthermore we would note the release of the final US GDP rate for Q1 on Thursday as well as the US consumption rate for May and the Core PCE price index for the same month.  <\/p>\n\n\n\n

Asian demand for gold <\/strong>mixed<\/strong><\/h2>\n\n\n\n

Last but not least we note that demand for physical gold from Asia seems to be muted especially from China, given the headwinds the Chinese economy is currently facing. Furthermore, we note the Chinese Dragon Boat festival that may have kept buyers away for the past week. On the other hand, reports surfaced that demand for physical gold is rising in India, with traders selling gold at a premium. Also an increase of footfall in local retail jewellery stores is reported. Gold traders are hoping that the easing of demand in China may be countered by an increase in India.   <\/p>\n\n\n\n

Technical Analysis – Gold<\/strong><\/h2>\n\n\n\n

XAUUSD H4 Chart<\/em><\/strong><\/h3>\n\n\n\n
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