Gold: Another new high – OCBC
|XAU/USD surged to another fresh highs as Trump doubled down on threats against Powell, OCBC's FX analysts Frances Cheung and Christopher Wong note.
Bias remains bullish until it turns
"Trump said in a social media post on Monday that 'there is virtually No Inflation', pointing to lower energy and food prices. 'But there can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW', Trump said, referring to Powell."
"We previously shared that firing Powell or interfering with the Fed not only undermines the principle of central bank independence, but also risks politicising the US monetary policy in a way that markets will find unsettling. If the credibility of the Fed (central bank independence) is called into question, it could erode confidence in the USD and accelerate the flow for safe haven gold."
"XAU was last at 3465 levels. Momentum is bullish while RSI rose into overbought conditions. Bias remains bullish until it turns. Next resistance at 3500, 3600 levels. Support at 3420, 3350 levels."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.