On Thursday (July 7), gold fluctuated around the short-term $1,745/ounce line in intraday trading. The intraday gold price rose slightly, and the gold price range was organized.
Last night, the minutes of the Fed meeting confirmed that the fed will adopt a more restrictive monetary policy to help the US dollar maintain its strength. The us dollar index once again refreshed its nearly 20-year high to 107.28, while the price of gold weakened sharply, falling below the key support around 1750.
Worsening inflation and fears of public loss of confidence in the Fed’s ability to make things better prompted policymakers to unanimously support extra-large rate hikes and reaffirm their determination to rein in prices, the minutes showed A 50- or 75-basis-point rate hike may be appropriate at its next policy meeting, with markets betting on another 75-basis-point rate hike by the Fed later this month. Fed officials have said their priority now is to fight inflation, even at the expense of some economic growth.
Gold prices are currently at their lowest levels since the end of last year, and the short-term bulls appear to be looking for signs of dips. But the fundamental factor behind the weakness of gold, the sharp tightening of central bank monetary policy cannot be ignored in the short term. The head of the International Monetary Fund said on Wednesday that the outlook for the global economy has dimmed markedly since April and that a global recession next year cannot be ruled out given rising risks. Although the fear of economic recession has enveloped the market, the mid-line may provide support for gold, but in the short-term, the US dollar is in an accelerated upward trend, and it is also attracting the influx of safe-haven funds, which has formed a double blow to gold, short-term Gold prices remain at risk of further declines.
The price of gold fell for two consecutive days and opened a downward channel. There was not much rebound during the entire decline. Yesterday, the US market directly broke the key support of 1750. The weak pattern is obvious, and the next target is around 1720.
At the daily level, the Bollinger Band opened downward, and the gold price once fell below the first-line support of the lower track. In the situation of the strong rise of the US dollar, it is difficult to have a decent rebound in the short-term, and the downward trend is likely to continue within the day.
In 4 hours, the Bollinger Band opened downward, the price of gold fell rapidly along the lower track, and the overall trend was weak. The intraday operation idea continued to be bearish, and the top was concerned about the first-line resistance of 1745-1750.