Gold in light of the US Federal Reserve meeting | Investing.com

This week is considered the most important in the global economy in general because of two things.

First: The last trading day is tomorrow in this month.

Second: The US Central Bank will meet and approve the interest rate or the so-called monetary policy on the US economy on Wednesday of this week.

As the markets were affected by a talk and an expectation that the US Central Bank will continue to raise the interest rate during this year until 2023, which is soon to reach 5% in order to confront the problem of inflation, which is the financial dilemma facing the US economy in particular and the global economy in general.

Of course, we do not forget that the American indicators issued on Friday give us an expectation of a noticeable and realistic decline in the American economy, which may enter the American economy into a phase of economic stagnation that is expected in the coming period, and this matter is taken into account because the recession will lose the currencies of their attractiveness even in light of the return High and will restore the luster of gold again.

Of course, in general, we do not forget that the geopolitical situation plays a major role in the global economy and affects energy prices directly and thus is reflected in economic inflation in all countries.

Of course, the central bank will meet on Wednesday, and it is expected that the interest rate will be raised by 0.75% so that the US central bank will become the highest interest in the current period, of course, and the market is clearly affected by it, but if the interest rate is raised by 0.50%, this will weaken and will be a major reason for the price increase To levels that may exceed 1660, but in general, gold was affected by the expectation of raising the interest rate by 0.75 levels, and 1620 levels are considered support, which is not difficult to test in general.

Of course, according to my expectation, and it is likely that the US Central Bank will raise the price by 0.50%, due to the decline in the main and industrial indicators in particular.

technically:

Technically, gold has 1620 levels of support and a recovery area from it, but any break and close below it indicates the possibility of testing 1580 levels again, the levels that are considered very important in the market, and exceeding 1660 levels is important to expect to return to the rise again.

Advice :

Buying is still the basis in these levels, and if we test 1620 levels, it is also considered a new buying opportunity for several reasons. We do not forget that we are approaching the end of this year and geopolitical tensions on the scene indicate a bad global economic situation.

Good luck to me and you and all, Lord.

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