After gold hits record highs again and again! Should I empty the ball or chase it?

arts. Kandi

arts. Last Wednesday (5/15), the U.S. Bureau of Labor Statistics released the latest inflation report showing that the CPI in April increased by 0.3% compared with the previous month (previous value was 0.4%). This was the first time in the past six months that the increase slowed down compared with the previous period. Announced value 3.4% (previous value 3.5%).
Core CPI increased by 0.3% compared with the previous period (previous value of 0.4%) and announced a value of 3.6% (previous value of 3.8%). The lowest increase since April 2021 undoubtedly gave market traders a boost in their optimistic tone for the U.S. stock and bond market beforehand. Further endorsement.
The U.S. CPI is boosted and the U.S. index is expected to challenge 103.5. Although housing costs have not slowed down as expected, transportation and health care have improved.
This number is not perfect, but it also means that the gradual slowdown in inflationary pressure in the United States is a clear bullish signal for the dollar.
Weak retail sales data and the New York Federal Reserve Bank\’s manufacturing index also showed that growth is slowing, further confirming the Federal Reserve\’s (Fed) interest rate cut expectations, and not surprisingly, the market showed a \”dollar falls, everything rises\” scene .
The U.S. dollar index (DXc1) soared from a low of 102.350 on March 8 to a high of 106.580 on April 16, and then challenged 106.580 again on May 1. After the failure, affected by a series of data, the U.S. dollar index fell directly below the 50.0% Fibonacci line at 104.465. Until the end of the month, the market will continue to be affected by the weakness of the US dollar index, causing everything to rise in a new pattern! The Federal Reserve has the final say on when to cut interest rates. Vice Chairman Jefferson said at a meeting held by the Federal Reserve Bank of Cleveland on May 13: \”In view of the slowdown in anti-inflation progress, it will be difficult to lower the inflation rate to the target level. On the other hand, it is appropriate to keep the policy rate in a restrictive range.
It would be appropriate to keep rates steady until there is more evidence that inflation will return to the 2% target.
\”Kansas Federal Reserve Bank President Schmid said on 5/14: \”Interest rates are likely to remain high for some time as policymakers wait for evidence that price pressures have eased.
Monetary policy is now in the right place with inflation expected to return to the Fed\’s 2% target.
\”Cleveland Fed President Mester said on 5/14: \”It is appropriate for the Fed to keep interest rates unchanged while waiting for evidence that price pressures will further ease.
It\’s too early to say that the Fed\’s progress has stalled or that inflation will reverse.
There is no rush to consider raising interest rates because rising short-term interest rates could bring new instability to the financial system.
” Federal Reserve (Fed) Chairman Powell said at an event hosted by the Foreign Bankers Association in Amsterdam on May 15: “The Federal Reserve needs to remain patient and wait for more evidence that high interest rates are suppressing inflation and that inflation continues to cool. Keep interest rates high for longer.
\”The Fed chairman group has taken over the speech and made remarks on various occasions. To put it bluntly, the key points are actually very simple. Let me summarize it for readers: (1) The Fed will not immediately change its strategy just because the one-time data is particularly good.
(2) We need to be \”patient\” and wait for more data to be particularly good before we start cutting interest rates.
(3) The Fed’s inflation target is 2%.
(4) The market no longer has to guess at the interest rate decision in June. The market will be more comfortable keeping policy unchanged and may not be ready to start cutting interest rates before September.
The main players in gold have returned, and the price of gold has reached a new high. The main players in gold have understood the Fed\’s hints and may not start cutting interest rates until September! When the Federal Reserve starts to cut interest rates, it will be all bad for the US dollar and equal to good for the US dollar. Therefore, gold is bound to wait until it starts to cut interest rates before it may fall sharply! The main gold force group is well aware that investors do not understand what the Federal Reserve said and believe that gold prices will weaken further after challenging the previous pressure. However, they do not know that the position report of gold COT has increased by 9,932, and the gold SPDR ETF has increased by 6.62 tons. Through the two major chips of gold, The analysis clearly shows that the main operating methods of gold are in the same direction and they are bullish on gold in the short term! The recent weekly fluctuation of gold has fallen to US$61.54 per ounce. The closing price of gold before the deadline was US$2414.58 per ounce. The closing price was 2414.58+61.54=2476.12 US dollars per ounce. The profit stop must be completed before US$2450 and the H1 time frame EMA240 is 2354. The best strategy is to use stop loss in USD.
On the road of life, choice is greater than hard work. The pattern determines the outcome. We will work with you to create a bright future for gold trading.
(This article only provides market information. All contents and opinions are for reference only and do not constitute any investment advice.
) Attached chart: Moving average chart of gold SPDR ETF inventory Source: \”Finance Weekly\” Issue 1239 For more exciting content, please go to \”Finance Weekly\”

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