The precious metal snapped three days of gains and tumbled back down to the support range from $1740s-1760s approximately. Gold is down -.56% on the day going into the opening of the NY session.
Gold will likely rise on the US indices falling, and is usually due to slowing economic growth. Because the Fed called for slower growth and higher inflation, it seems like a good sign for the metal against the USD. However, gold is falling after this news which is confusing. We could be seeing an uncertain reaction to this news before a rise in price; I think gold could be something to consider buying going into next week after the Fed's announcement in FOMC yesterday.
Something to look for is a break under support at the lows of $1743 because that would probably mean that the metal doesn't have enough strength to to come back up. However, if gold can stay above this support level, it might start seeing strength as the USD weakens with inflation. The past several months have not been great for gold, so if price falls under this support, there is clean support around $1700.
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Today I'll share some economic analysis on the CPI report and what to look for in order to tell if inflation will get worse. Lastly, I'll cover some ways that you can make an investment play on inflation. September CPI Report The Consumer Price Index report for September 2021 was published on October 12, 2021. […]
10/25/2021 Gold and crypto pairs have been on a tear recently due to several factors and one of them being inflation. Some analysts are calling for a prolonged run in demand for the precious metal and a $3000 per oz price in under a year. Our outlook I think that gold has been due for […]