Hey there,
So this year has definitely gotten off to an interesting start with gold ending off 2023 at it's highs point to date.
This however, does forces us to ask the question, are we going to see a break of this key resistance zone or are we going to see a reaction to it?
In today's video we look at several fundamental and technical reasons why we could potentially see a reaction to this level instead of a break... at least in the short term.
Let's start off with a statement that was made by Ralph Bostic, President of the Atlanta Federal Reserve. He states that he remains biased toward monetary policy remaining tight in the near-term.
This could be because sticky inflation (Wages and Consumer prices that does not respond quickly to changes in demand) and signs of resilience in the labour market continues to give the FED more headroom to keep rates higher for longer.
This poses a significant problem for the "yellow Metal" because higher rates pushes the opportunity cost of investing in gold up, which offers no yield.
So this year has definitely gotten off to an interesting start with gold ending off 2023 at it's highs point to date.
This however, does forces us to ask the question, are we going to see a break of this key resistance zone or are we going to see a reaction to it?
In today's video we look at several fundamental and technical reasons why we could potentially see a reaction to this level instead of a break... at least in the short term.
Let's start off with a statement that was made by Ralph Bostic, President of the Atlanta Federal Reserve. He states that he remains biased toward monetary policy remaining tight in the near-term.
This could be because sticky inflation (Wages and Consumer prices that does not respond quickly to changes in demand) and signs of resilience in the labour market continues to give the FED more headroom to keep rates higher for longer.
This poses a significant problem for the "yellow Metal" because higher rates pushes the opportunity cost of investing in gold up, which offers no yield.