The first targets pointed out in the analysis have been reached: Gold to 1850 and DXY to 103.00.
DXY: after breaking the relevant maximums from 2016, it reverted to test the relevant area of 104.00-102.00. This gave an upward momentum to ***/USD pairs.
XAUUSD: gold was trading around 1800, a discount level for investors to buy gold, the slowdown on the USD permitted a retracement to the first target of 1850.
The first two charts of XAUUSD and DXY from the analysis shared last week on our instagram page( https://www.instagram.com/p/CdiTneIKxBg/ ); the following two are the charts today.
The last chart is a summary of the main macroeconomic drivers in the gold price in the last months.
The expectations are that the FED needs more drastic actions to keep inflation in check and it is believed in at least a 50 basis point rate hike in the next two policy meetings.
However, it must be taken in consideration the risks that the rise of the interest rates can have on the economy.
The dollar is overall bullish, and the next two weeks will be fundamentals with the release of some important data regarding GDP q/q, unemployment and inflation.
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