ββ#StockMarket #Gold #XAUUSD #FED #PCEindexπ₯ Gold is again more expensive than the dollar.
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Short-term weakness in the US dollar, which has investors eagerly awaiting the release of crucial inflation data, is keeping the momentum on gold's recovery. The price is holding steady in the critical $2350 zone and is gathering strength for a new trend.
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The gold market is considered the most reliable inflation gauge because of its strong inverse correlation with the US dollar. The record growth of the gold price in March-April this year seemed to many to be a leading signal of slowing inflation, but the current dynamics do not confirm it. In addition, the gold market is a strong argument for all commodity markets, but the commodity sector of the economy does not yet support such dynamics either. On the contrary, there was a thought that the reduction of discount rates once again may be postponed.
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After a few days of flatness, there was again interest in the yellow metal. Inflation statistics, especially the PCE index, should clarify the situation with the upcoming Fed manipulations. So far, the discussion of rate adjustments has been vague, and markets are waiting for clearer guidance.
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Despite the fact that the latest Fed minutes say that there is a possibility of rate hikes due to persistent inflation, market sentiment is leaning towards a possible softening of the Fed's stance, as evidenced by the positive dynamics of short-term gold futures contracts.
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The necessary structure for the upside breakout has been formed in the $2350 zone. The breakdown of the $2375/85 level should confirm the growth. However, large options in the $2400 zone were closed last week, so there is nothing to support this movement. A breakdown from this range may lead to a strong fall of 40-50 points, after which the market will have to look for targets below $2300. Large participants are unlikely to like it, so speculators will become active. Be vigilant!
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Profits to yβall!