Article by: ETO Markets

Markets seemed convinced that the cycle of rate hikes was over, and Federal Reserve Chair Powell underscored the Fed's willingness to tighten policy further if necessary. Powell declared that the benchmark overnight interest rate was well into restrictive zone, indicating that it was evident that US monetary policy was slowing the economy as anticipated. The yellow metal may profit from the expectation that the tightening cycle will finish. Nevertheless, lower interest rates often cause gold to increase, while higher interest rates put pressure on the yellow metal.

The market has to close over $… each day in order to begin a long-term rally toward the all-time high of $... Buyers of gold must first overcome their psychological barrier of $… before they can proceed. However, should the corrective slide continue, the next significant support is located at the $… mark, below which buyers of gold may find solace in the 20-DMA at $…