Hedges are returning to the gold market on expectations that July will be the last rate hike in the Fed's most aggressive austerity cycle, but some are beginning to question that optimism.
With headline inflation down to 3%, many investors believe the Fed is unlikely to raise real interest rates to support its hawkish arguments. However, given that consumer price index (CPI)-led inflation has been subdued following higher-than-expected baseline unemployment claims, reserves and the U.S. dollar are trending higher, positioning is likely to turn to a short-term theme as the Fed's decision date approaches," analysts at TD Securities said in a research note released on Friday.
“With core CPI still up at 4.8% and employment strong, US Fed officials will continue to speak out about the unfavorable situation after recording another 25 basis points gain on Wednesday.”
GOLD
SELL 1963 - 1965💯💯
✅ TP1: 1960
✅ TP2: 1955
✅ TP3: 1950
🛑 SL: 1970
With headline inflation down to 3%, many investors believe the Fed is unlikely to raise real interest rates to support its hawkish arguments. However, given that consumer price index (CPI)-led inflation has been subdued following higher-than-expected baseline unemployment claims, reserves and the U.S. dollar are trending higher, positioning is likely to turn to a short-term theme as the Fed's decision date approaches," analysts at TD Securities said in a research note released on Friday.
“With core CPI still up at 4.8% and employment strong, US Fed officials will continue to speak out about the unfavorable situation after recording another 25 basis points gain on Wednesday.”
GOLD
SELL 1963 - 1965💯💯 ✅ TP1: 1960
✅ TP2: 1955
✅ TP3: 1950
🛑 SL: 1970
