Gold Price Softens Ahead Of A Busy Week With Fed, BoE, SNB And BoJ Meetings
Gold slipped again today as the US Dollar found some traction with Treasury yields maintain lofty levels going into busy week for central banks. The non-yielding precious metal is below us$ 1,670 at the time of going to print.
The Federal Reserve meet on Wednesday while the Bank of England (BoE) and the Swiss National Bank (SNB) will gather on Thursday.
The Fed and SNB are anticipated to raise rates by 75 basis points (bp), while the BoE is eyeing a 50 bp hike according to a Bloomberg survey of economists.
The Bank of Japan are also meeting on Thursday where no changed is expected from them. USD/JPY has had a quiet day trading in a small range with Japan on holiday.
Sterling appears likely to see little action on Monday with the UK out for a day of mourning of the passing of Queen Elizabeth II.
Equity markets have started the week with the same cautious tone as last week ahead of the central bank meetings.
China’s CSI 300 was the only stock market to be slightly in the green after lockdown restrictions were eased for Chengdu. There is also speculation that Hong Kong might end hotel quarantine this week.
Crude oil is steady with the WTI futures contract near US$ 85 bbl while the Brent contract is a touch under US$ 92 bbl.
It is a very light data day ahead, but ECB Vice President Luis de Guindos will be speaking in Madrid
The full economic calendar can be viewed here.
Gold Technical Analysis
Gold traded at its lowest level since the pandemic began on Friday as it remains ensconced in descending trend channel.
1602 may provide support as it is the 161.8% Fibonacci Extension of the late July-August rally from 1681 to 1808.
Resistance might be at the break points of 1681 and 1689 ahead of the previous highs of 1735 and 1766.
More By This Author:
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Japanese Yen Forecast: USD/JPY At Pivotal Point Ahead Of Fed, BoJ Rate Decision
Oil Price Forecast: WTI At Major Support - Crude Break Could Fuel A Collapse
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