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Gold: Could Rate Cut Hopes Survive till Fed’s June Meet?

BySatendra Singh
Published 04/01/2024, 11:19 AM
Updated 07/09/2023, 06:31 AM

On analyzing the gold futures in the daily chart, I find the exacerbated movements amid growing bullish sentiments for an interest-rate cut by the Fed in its June 2024 meeting.

The Fed signaled that interest rates could begin to decline shortly but made it clear that they will keep an eye on changing economic conditions as the Federal Open Market Committee held rates steady during their previous meeting in March 2024.

FOMC raised interest rates to 5.25% - 5.50% at its July 2023 meeting but they still did not look convincing enough to curb inflation. Since then, rates have held steady confirming the sustainability of this rally in the gold futures could not last for a long as some Fed watchers are more concerned about the risks of bank failure, stock market instability, mortgage rates, and global economic uncertainty.

Since I wrote my last article, when the gold futures at $2168, after hitting a weekly high at $2232 on March 21 with a bearish formation, I could not imagine that only mere rate-cut hopes could push the gold futures to hit a life-time high.

But, today’s move ensures an advent of exhaustion, after the announcement of consumer prices. I conclude that a sustainable move below the immediate support at $2242 will confirm the continuation of the selling spree.

Gold Futures Daily Chart

Latest comments

I conclude that a sustainable move below the immediate support at 2242 will confirm the continuation of the selling spree
continuation 🤡
bozo looking at the chart upside down. tool.
Hope no one is making a trading decision based on your articles.
Rate cut hopes are only a part of the reason for golds move higher. At least 5 other factors are also causing the gains imo: 1. US putting sanctions on various countries causing them to diversify out of the dollar into gold. 2. Geopolitical fears of China, Middle East and Ukraine Russia war. 3. Us printing over 1 trillion dollars every 90 days adding to the massive deficit we already have. 4. Improving Investor Sentiment as gold hits new highs. 5. Stock market at record highs forcing money into alternative and safe investments that gold uniquely fits. For all these reasons gold is rising and will likely see 3000 by end of 2024.
Thanks Mr. Mark your precious comments add more cear view to the positive side of the current move. But fresh selling spree awaits here. Just wait and watch price movement by the yellow metal in first half of April 2024.
sir dont mind you are big seller always wrong article sir
Any change in thoughts, now Mr. Satendra?
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