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Market News International gold prices are expected to fall below US$1,860 in the short term
International gold prices are expected to fall below US$1,860 in the short term
On November 18, the international gold price surged and fell, and the U.S. dollar index bottomed out and rebounded, weakening the attractiveness of gold. The price of gold is expected to fall below $1,860 in the short term. However, inflation in major developed economies has been significantly higher, and gold will continue to show its charm against inflation for a period of time.
2021-11-18
9218
On Thursday (November 18), the international gold price surged and fell, and the US dollar index bottomed out and rebounded, weakening the attractiveness of gold. The price of gold is expected to fall below $1,860 in the short term. However, inflation in major developed economies has been significantly higher, and gold will continue to show its charm against inflation for a period of time.
GMT+8 13:44, spot gold fell 0.07% to US$1866.25 per ounce; the main COMEX gold contract fell 0.11% to US$1868.1 per ounce; the US dollar index rose 0.04% to 95.812.
U.S. Federal Reserve Bank of Chicago Chairman Evans reiterated on Wednesday (November 17) that even if the Fed is assessing whether high inflation has subsided as he expected, it will not be able to complete its debt reduction plan until the middle of next year.
Data released on Wednesday showed that due to the soaring household energy bills, the UK's October inflation rate soared to a 10-year high, which will strengthen the Bank of England's expectation of interest rate hike next month. The Bank of England is expected to become the first central bank of a large economy to raise interest rates since the new crown virus swept the global economy.
The UK inflation rate is currently in the middle of the Group of Seven (G7). But the Governor of the Bank of England Bailey said earlier this week that he was very disturbed by the inflation outlook, and that the decision to keep interest rates unchanged earlier this month was a very difficult decision — taking financial markets off guard.
European Central Bank executive committee member Schnabel said that if inflation in the euro zone lasts longer than expected, the European Central Bank must be prepared to control inflation, suggesting that there are differences between policymakers. Schnabel reiterated the European Central Bank's view that price growth will slow next year, but she warned that the outlook has become more uncertain and policymakers should keep an open mind.
On the daily chart, the price of gold is in a downward ((y)) wave starting from $1,870, and the lower support is looking at the 38.2% target of $1860. The ((y)) wave is a sub-wave of the correction iv wave that started at $1877. The iv wave is a sub-wave of the upward (iii) wave that started at $1758. The (iii) wave is a sub-wave of the upward wave ((iii)) that started from $1,720.
GMT+8 13:44, spot gold fell 0.07% to US$1866.25 per ounce; the main COMEX gold contract fell 0.11% to US$1868.1 per ounce; the US dollar index rose 0.04% to 95.812.
U.S. Federal Reserve Bank of Chicago Chairman Evans reiterated on Wednesday (November 17) that even if the Fed is assessing whether high inflation has subsided as he expected, it will not be able to complete its debt reduction plan until the middle of next year.
Data released on Wednesday showed that due to the soaring household energy bills, the UK's October inflation rate soared to a 10-year high, which will strengthen the Bank of England's expectation of interest rate hike next month. The Bank of England is expected to become the first central bank of a large economy to raise interest rates since the new crown virus swept the global economy.
The UK inflation rate is currently in the middle of the Group of Seven (G7). But the Governor of the Bank of England Bailey said earlier this week that he was very disturbed by the inflation outlook, and that the decision to keep interest rates unchanged earlier this month was a very difficult decision — taking financial markets off guard.
European Central Bank executive committee member Schnabel said that if inflation in the euro zone lasts longer than expected, the European Central Bank must be prepared to control inflation, suggesting that there are differences between policymakers. Schnabel reiterated the European Central Bank's view that price growth will slow next year, but she warned that the outlook has become more uncertain and policymakers should keep an open mind.
On the daily chart, the price of gold is in a downward ((y)) wave starting from $1,870, and the lower support is looking at the 38.2% target of $1860. The ((y)) wave is a sub-wave of the correction iv wave that started at $1877. The iv wave is a sub-wave of the upward (iii) wave that started at $1758. The (iii) wave is a sub-wave of the upward wave ((iii)) that started from $1,720.
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