Strong US housing report and restrictive monetary policy by Fed pressure gold lower garyswagner gold silver
Chairman’s Powell upcoming testimony coupled with a report revealing strong economic growth has created continuous bearish market sentiment for gold. The decline in gold futures today was so severe that the precious yellow metal gave up $23.50 with the most active August futures contract settling at $1947.70 by the close of trading in New York. On a technical basis, this created major chart damage as today’s close falls below the 100-day moving average.
The last time gold closed under its 100-day moving average was approximately 8 months ago in November 2022. This occurred after a multi-month price correction which took gold from $2085 to a low of approximately $1620. Today’s decline is partially due to the lingering bearish market sentiment created when the Federal Reserve revealed that it plans to enact more rate hikes this year at last week’s FOMC meeting. Now, market participants are focused on what Chairman Powell will say during his testimony to Congress tomorrow.
On Monday the National Association of Homebuilders reported that homebuilders have become optimistic about the housing market outlook. US single-family homebuilding surged in May to its highest level in more than a year. Last month construction on new homes in the United States was up 21.7%. The strong uptick in demand for new single-family homes is partially the result of high mortgage rates which are currently above 6%.
The combination of a highly restrictive and hawkish monetary policy by the Federal Reserve and data revealing strong economic growth in the United States continue to pressure gold to lower prices. Today’s price decline did create technical chart damage as gold futures closed below its 100-day moving average a key indicator used by market technicians to gauge intermediate market sentiment.Gary S. WagnerFollow @garyswagner gary@thegoldforecast.com www.thegoldforecast.
Nigeria Latest News, Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
'Retail has nine lives' in Canada as 2023 consumer spending strong — for now: Report - BNN BloombergRetail sales growth in Canada is continuing to outperform much of the world so far this year, a sign of the ongoing resiliency of Canadian shoppers despite higher inflation and recession predictions, a new report has found.
Read more »
Durham Region mayors respond after receiving ‘strong mayor’ powersFive mayors in Durham Region are reacting to the new legislative powers that the province is granting them. The Ford government announced Friday that it woul
Read more »
BNB fiercely defends $220 amidst strong regulatory waveDespite defending the $220 support, BNB has to clear these roadblocks to flip bullish on the higher time-frame charts.
Read more »
'Retail has nine lives' in Canada as 2023 consumer spending strong -- for now: reportRetail sales growth in Canada is continuing to outperform much of the world so far this year, a sign of the ongoing resiliency of Canadian shoppers despite higher inflation and recession predictions, a new report has found.
Read more »
'Retail has nine lives' in Canada as 2023 consumer spending strong – for now: ReportRetail sales growth in Canada is continuing to outperform much of the world so far this year, a sign of the ongoing resiliency of Canadian shoppers despite…
Read more »