Gold Near Term Target Price: The American dollar appreciated throughout the first half of the day but rotated south with Wall Street’s opening.
Financial markets are in risk-off mode, with Wall Street resuming the selling spiral after enjoying a relief rally in the Federal Reserve’s decision aftermath. A batch of tepid US data, however, revived concerns among investors, fueling demand for safety. Gold (Yellow Metal) soared to the current $1,850 price zone after bottoming at $1,814.84 a troy ounce.
Global stock indexes
Global stock indexes are dipping in the red, while demand for government bonds has sent yields to the lower end of their weekly range. The 10-year Treasury note currently yields 3.31%, after peaking at 3.495% earlier in the day.
Central banks have taken center stage this week, as the US Federal Reserve, the Bank of England and the Switzerland National Bank had monetary policy meetings. All three hiked rates with the aim of cooling down stubbornly high inflation while keeping an eye on economic growth. On Thursday, the SNB hiked its benchmark rate by 50 bps by surprise, while the BOE stuck to its plan of hiking by 25 bps. Central banks’ actions these days reflect policymakers’ concerns beyond their words. The Bank of Japan will be the last to decide on monetary policy early on Friday.
Gold Price short-term outlook
From a technical point of view, the daily chart for the Gold (Yellow Metal) pair shows an increasing bullish potential. The price has advanced above directionless 20 and 200 SMAs, while technical indicators offer modest bullish slopes around their midlines.
The 4-hour chart shows that technical indicators head firmly within positive levels, reflecting strong buying interest. At the same time, the price has managed to extend beyond all of its moving averages, which anyway maintain bearish slopes. The 100 and 200 SMA converge around $1,842, providing immediate dynamic support.
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