XAUUSD H1 | Market View

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- Gold markets have rallied significantly during the course to break above the 50 week EMA and testing major downtrend line, but more importantly, test the 1800. We have fallen quite hard from that region and ended up forming a bit of a shooting star . I think at this point in time, the market is going to continue to struggle under the weight of selling pressure. The market is currently straddling the pair of 50% levels at 1795.00 and 1800.00 that should determine the next major move in the market
- Since the release of the hawkish Fed minutes, yields have dipped and the U.S. Dollar has weakened. But does it represent a change in sentiment or buy the rumor, sell the fact? The Fed may have miscalculated its assessment of inflation when it called the rise “transitory”, but they didn’t lie. Just like they’re not lying when they said they have to the tools to fight inflation .
There is no question that gold is being supported by rising inflation , but if you ignore rising Treasury yields, you’re taking on a lot of risk. The Fed has the power to raise rates as fast or slow as they want. They just haven’t told us when they are going to raise, and how fast they are going to move. Once that is revealed, gold will have a hard time sustaining the rally. Fortunately for the bulls, they still have a little more than 2 weeks before that news may be revealed.