Gold Price News and Forecast: XAU/USD has chopped either side of the $1800 level in recent trade
|Gold Price Analysis: XAU/USD choppy either side of $1800 level as Fed Chair Powell’s testimony gets underway
Spot gold prices have been choppy in recent trade amid an uptick in trading volumes at the start of the US trading session and as Fed Chair Jerome Powell begins the first day of his semi-annual testimony to Congress. His statement to Congress was released last Friday and contained no surprises; markets are instead focused on anything he might have to say regarding recent moves in the US bond market when speaking off the cuff in the Q&P session. More specifically, real yields have surged as markets have brought forward their expectations for the Fed’s first-rate hike; a 70% chance is now assigned to the Fed hiking rates by the end of 2022, a challenge to the Fed’s current guidance which says there will be no hikes through 2023. Thus, Powell may want to push back on market pricing in some regard.
Trading gold to the downside, stochastics on XAU/USD overbought
Yesterday we looked at gold from the fundamental standpoint and the market still sees downward pressure even though price has risen above $1800.
From the technical view, we see price at the upper trend line in this bearish run so we will wait for confirmation before going short.
For this, we can wait for a bounce or use another technical indicator like the Stochastic Oscillator which is now showing Overbought.
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