The Gold Prices Might Go Up Following Possible US Slowdown
Gold Geometrical Technical Analysis and Fundamental Analysis
The Prices of Gold has risen 15.96% up since last September to March before fall 5.29% down from February to April, However thee uptrend still holds at 3/1 level of Gann Line. I expect The Gold prices to continue going up to 1 fibonacci level at 1346 or 1.238 fibonacci level at 1390. The Potential US Slowdown and interest hike is likely to remain the same might be a catalyst for Investors to invest in Gold as a safe haven assets.
Financial markets remain nervous about a potential US slowdown and continue to price in a significant chance of a Federal Reserve interest rate cut this year.
At the last Fed meeting, the central bank held rates steady and sent strong signals that there might be no more rate hikes at all this year, citing slowing economic growth. Today, with the minutes, investors may try to glean more about policy makers’ outlook on the economy, inflation, and interest rates, but they may not find anything surprising.
In economic news today, U.S. consumer prices increased the most in more than a year in March as the price of rent, food and gasoline climbed, according to U.S. Labor Department data released this morning. The Consumer Price Index (CPI) increased 0.4% in March, the highest increase since January 2018. Still, inflation remains fairly tame with modest increases in wages so far, despite a tight labor market.
"We expect US real gross domestic product (GDP) to slow in 2019 and 2020," comments Metals Focus Director Nikos Kavalis. "This reflects a natural tapering, following two very strong years, the fading of windfall gains from the late-2017 tax reforms and, eventually, also the impact of trade wars on US consumer spending."
Gold Geometrical Technical Analysis and Fundamental Analysis
The Prices of Gold has risen 15.96% up since last September to March before fall 5.29% down from February to April, However thee uptrend still holds at 3/1 level of Gann Line. I expect The Gold prices to continue going up to 1 fibonacci level at 1346 or 1.238 fibonacci level at 1390. The Potential US Slowdown and interest hike is likely to remain the same might be a catalyst for Investors to invest in Gold as a safe haven assets.
Financial markets remain nervous about a potential US slowdown and continue to price in a significant chance of a Federal Reserve interest rate cut this year.
At the last Fed meeting, the central bank held rates steady and sent strong signals that there might be no more rate hikes at all this year, citing slowing economic growth. Today, with the minutes, investors may try to glean more about policy makers’ outlook on the economy, inflation, and interest rates, but they may not find anything surprising.
In economic news today, U.S. consumer prices increased the most in more than a year in March as the price of rent, food and gasoline climbed, according to U.S. Labor Department data released this morning. The Consumer Price Index (CPI) increased 0.4% in March, the highest increase since January 2018. Still, inflation remains fairly tame with modest increases in wages so far, despite a tight labor market.
"We expect US real gross domestic product (GDP) to slow in 2019 and 2020," comments Metals Focus Director Nikos Kavalis. "This reflects a natural tapering, following two very strong years, the fading of windfall gains from the late-2017 tax reforms and, eventually, also the impact of trade wars on US consumer spending."