Today’s data on the US economy disappointed, with gold after rebounding at $ 1400 already up by about $ 16 dollars. However, the price remains within the framework of consolidation, despite today’s rise to the upper levels in the area around $ 1422-23, where we have a resistance zone. The range is still intact.
The market is currently trying to weigh whether we will see a reduction in interest rates from the point of view of “insurance” on the part of the Fed. Or the other option – a new global cycle of global monetary loosening by central banks, and it will cut bonds almost to zero or below it even in the near future.
One of the more interesting news from today is the railway company CSX. They believe that there is an economic slowdown, at a time of very different signals from the economy, and at the same time, the company reduces its revenue forecast. Often companies, especially those in the transport sector, have “some other idea” about what is going to happen.
There is also the fear that the next news from the China-US front will be rather negative. Here the gold will have to endure until we see a breakthrough in the bullish flag or its spoilage.
Trader Martin Nikolov