Weekly Technical Gold Price Analysis: Anticipation of Two More Rate Rises Casts Shadow on Markets
The recent announcement by Fed Chair Powell confirming two additional rate rises for the US by the end of the year has sent shockwaves through the markets, resulting in collective declines.
While the temporary pause in rate hikes provided a brief respite for the US500, the optimism quickly faded. Share markets have experienced negative weekly results, with the US500 reaching a high of 4450 before settling at 4382.
Gold and silver have also suffered a challenging week, as silver rapidly approached its 200-day moving average within just a few trading days. We will illustrate this movement in today’s charts.
Emergency bank lending has once again increased, highlighting the ongoing stress that banks face in the current market. Lending rose by $359 million, bringing the total to $105.9 billion.
The US leading economic index has recorded its 14th consecutive month of decline, indicating that a recession is imminent. Comprised of 10 indicators that gauge the health of an economy, the index registered at -0.7%.
While the US Fed maintains a facade of strength and confidence in its announcements, the aggressive rate hikes are undeniably straining economies. With two more increases scheduled within the next six months, debt holders worldwide are bracing themselves for further challenges and economic pain.
Gold daily chart, with 200MDA
Silver daily chart, with 200MDA
Gold Futures Technical Analysis
Gold Futures monthly analysis continues to recommend a STRONG BUY with Weekly analysis and a SELL signal.
Technical indicators – Monthly Projections
| RSI(14) | Buy |
| STOCH(9,6) | Buy |
| STOCHRSI(14) | Buy |
| MACD(12,26) | Buy |
| ADX(14) | Sell |
| Williams %R | Buy |
| CCI(14) | Buy |
| ATR(14) | Less Volatility |
| Highs/Lows(14) | Buy |
| Ultimate Oscillator | Sell |
| ROC | Buy |
| Bull/Bear Power(13) | Buy |
Summary for Monthly Forecast: STRONG BUY
Disclaimer
This news and any links provided are for general information only and should not be taken as constituting professional advice from Jaggards. Jaggards is not a financial adviser. We recommend you seek independent financial advice before making any financial decisions based on the information contained in this article.
