Statements by Two US Officials Unsettle Gold!
Statements by Two US Officials Unsettle Gold!
Gold prices moved within a limited range in tonight's Asian session following strong statements from two key US economic policy officials. Federal Reserve Bank of Cleveland President Beth Hammack and National Economic Council Director Kevin Hassett raised concerns that monetary easing is not imminent—a factor that has held back the precious metal's surge.
Hammack emphasized that even though inflation is showing signs of abating, monetary policy needs to remain restrictive to ensure price pressures are truly contained. Meanwhile, Hassett noted that "The household survey wasn't done in October, so we'll get half of the jobs report," National Economic Council Director Kevin Hassett said on Fox News. "We'll get the jobs part, but we won't get the unemployment rate, and that's only for one month."
"We shouldn't rush to cut interest rates until we're confident inflation is under control," Hammack said.
"October Jobs Report Predicted to be Positive," Hassett added.
These remarks were interpreted by the market as a signal that expectations of an imminent interest rate cut might have to be postponed. Because gold is seen as a more attractive asset when interest rates are lower and the dollar is weaker, the response is a slight increase or a flat price movement, rather than a major surge.
Due to the hawkish policy signals, the technical potential in today's Asian session is as follows:
Gold could find lower resistance than expected, for example, if it fails to break through the US$4,220 area, which was previously the target.
Support will be tested if gold does not receive support from new data, possibly falling towards the support level of US$4,135-US$4,100.
Upside momentum will be limited until there is a change in the narrative (e.g., a dovish statement from the Fed, sharply lower inflation data, or a sharp weakening of the dollar).
Source: Newsmaker.id
