Bullish or bearish? Comprehensive Gold outlook and predictions
Hello, fellow traders!
📰 Key economic updates:
The Westpac Consumer Sentiment Index for June 2024 rose by 0.2%, showing a slight improvement from the last month, but remaining near record lows. Consumers are still pretty bummed, worried about things like inflation, rising interest rates, and whether the economy is about to nosedive.
When people feel down about the economy, they tighten their wallets, which means less spending and slower growth. This kind of pessimism can drive investors to seek safer assets, such as Gold as well as pressure the Reserve Bank of Australia (RBA) to think about cutting interest rates to give the economy a kickstart.
Canada’s Consumer Price Index (CPI) just hit 2.9% for June 2024, beating the forecast of 2.6% and up from 2.7% last month. Translation: inflation’s running hotter and prices for just about everything in Canada are rising faster.
This increase could have a bullish effect on Gold prices. Investors may increase their holdings in Gold, protecting their money from losing value.
Governor Michelle W. Bowman took the stage today, delivering a stern message that lowering the policy rate is off the table for now due to persistent inflation concerns. She made it clear that the Fed needs to stay sharp and cautious to get inflation back to the sweet spot of 2%. Bowman put it bluntly: “We are still not yet at the point where it is appropriate to lower the policy rate.”
📊 Let’s look at the data:
Spot Gold took a bit of a tumble this morning, slipping 0.4% to about $2,323.60 per ounce. U.S. Gold futures weren't far behind, falling 0.4% to $2,335.80.
Meanwhile, the dollar rose 0.2% against its rivals and benchmark 10-year yields also edged higher.
The price is broke out of the triangle pattern moving slightly upward after the Friday’s dip. There’s also a falling wedge pattern forming, suggesting that we might see prices edge even higher.
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