Gold prices lightened on Wednesday with the strengthening of the dollar. In the meantime, investors are waiting for new clues from the Central Banks, especially the US Federal Bank (FED), about their monetary policy plans. Therefore, gold prices are still traded in a narrow range. Meanwhile, today, there is an important event that will affect the markets. Today, the FED President Jerome Powell will testify in front of the US Senate Banking Committee at the hearing titled ısı Six -Month Monetary Policy Report to the Congress ”. Here are the details…
How will the FED president’s speech affect the gold markets?
The dollar strengthened towards the peaks of the last twenty years, making the dollar’s priced ingot more expensive for buyers with other currencies. Oanda Senior Analyst Jeffrey Halley said, “Gold is now satisfied with the opposite transaction against the US dollar in a horizontal range and we will need a large -faced movement from the dollar to change it.” Market participants are also watching the FED President Jerome Powell’s speeches on Washington DC this week. Halley used the following statements:
If Powell is a hawk tonight, we can see another rise of the US dollar as the returns rise again. This will push the gold even further. Otherwise, I foresee a minimum effect.
What awaits experts after the speech?
According to the Reuters survey, the Fed will probably make an interest rate hike of 75 basis points in July. Then he will increase a 50 basis points in September. The earliest quarter percent will not go back to a quarter -percent increase until November. Kriptokoin.comAs we have reported, higher interest rates and bond returns increase the opportunity cost of keeping gold. This does not provide return. Meanwhile, according to a draft document, Gold may be among the assets that can be targeted in the possible sanctions of the European Union against Russia.
According to Reuters’ technical analyst Wang Tao, the spotlight is the chance to test a support for $ 1,821 per ounce. Breaking below this level and falling to $ 1,812. US President Joe Biden and US Treasury Minister Janet Yellen; Markets indicate that fears of recession are not inevitable; However, it is worth mentioning that the market avoids buying this “assurance”.
What is the situation for Bitcoin and Altcoins?
Gold, 10 -year indicator US Treasury bond return earnings. He closed his third trading day in the negative area on Tuesday in a row. XAU/USD is traded with modest losses just below $ 1,830 in the early hours on Wednesday. Meanwhile, Bitcoin lost the acceleration of recovery. We last saw it fell to $ 20,000. Ethereum has already fell more than 4 percent. Breast coins such as Shıb and Doge are traded on the green board.
The FOMC speech of the FED President often also affects crypto money markets. It is worth mentioning that Bitcoin is currently moving in parallel with US shares, ie risky assets. In other words, the opposite of safe port assets such as gold carries the risk of value change in the direction. But all of this depends on the process after the conversation. Time will show what happens.
