Gold xauusd rate hike on 26 July and looming recession

Dear Ziilllaatraders,

A rate hike increases the interest rate in the country whose central bank implements it. This often leads to a stronger currency, in this case, the Dollar, as higher interest rates attract foreign investors seeking higher returns. As a result, the value of the Dollar may rise relative to other currencies, including gold. This could potentially put downward pressure on the XAUUSD price.

But as we have seen after the NFP news, a significant bearish movement has unfolded, making me think that at the end of the month, we will see a bearish candle for the dollar and a bullish candle for XAUUSD. I will let you guys know what the future possible movements are.

Furthermore, we have a looming recession last 2 years had a negative GDP which would suggest a recession is looming. Adding to this, the FED has released a probability chart where you can see that there is more chance of a rate decrease in March 2024. Good to know that we have some time before the highly possible recession.

Conclusion:
short-term retracement of DXY which will pressure XAUUSD down. After this DXY will probably continue the downtrend and so will gold move up to the 2000 levels.


Greetings,
Ziilllaatraders