Solid News

Gold is Consolidating Near 1900

3/14/2023 10:54 AM

The XAU/USD pair is declining, correcting after a sharp increase over the past three trading sessions, which allowed the quotes to update the local highs of February 3. At the moment, the asset is testing the level of 1900.00 for a breakdown, being influenced by technical factors.

An upward trend is also observed in Japan, where at a yesterday's auction, gold reached 66.67 for the first time, exceeding last week's figure by 32.0 yen. According to a report from precious metals producer Tanaka Kikinzoku Kogyo KK, the current growth reflects investors' uncertainty about the stability of the US financial system after the failure of two of the country's major banks, Silicon Valley Bank and Signature Bank, as a result of which they seek to redirect their capital into proven and safe-haven currencies. Yesterday, during a press conference, US President Joe Biden said that he would ask Congress to tighten regulation of the industry in order to "minimize the likelihood of a repeat of bank failures". At the same time, the US Federal Reserve and the Treasury Department announced the launch of an emergency support program for credit institutions, which will stimulate the sale of Treasury bonds at par, which will help them build up the necessary liquidity.

In addition, the US authorities hastened to calm the markets, assuring that the depositors of the affected banks will have access to their savings. However, investors are hesitant about the regulator's "hawkish" policy. It is obvious that a further increase in the interest rate will have an extremely negative impact on the stability of individual financial institutions, but the Fed needs to fight high inflation in the country.

Today at 14:30 (GMT+2), market participants will follow the publication of data on the Consumer Price Index: in February, the index may slow down from 6.4% to 6.0% in annual terms, and only a slight correction is expected in monthly terms from 0.5% to 0.4%.

Bollinger Bands on the daily chart show a steady increase. The price range is expanding but it fails to conform to the surge of "bullish" sentiments at the moment. MACD indicator is growing keeping a buy signal (located above the signal line). Stochastic retains a steady uptrend, but is located in close proximity to its highs, which points to the risk of overbought gold in the ultra-short term.

Resistance levels: 1914.44, 1930.00, 1952.53, 1974.22. | Support levels: 1900.00, 1878.84, 1869.49, 1857.27.

Find Us
Registered Address : Bonovo Road – Fomboni Island of Mohéli – Comoros Union
Sofia, PO Box 1407,14 Flip Kutev Str. Floor 2, Industrial area Hladilnika, Bulgaria
Call Us
+35 924 928 392

Risk Warnings
Solid ECN Securities LLC offers trading on Foreign Exchange (‘Forex’ or ‘FX’) and Contracts for Difference (‘CFDs’), which are complex financial products that are traded on margin. They carry a high level of risk since leverage can work both to your advantage and disadvantage. As a result, these products may not be suitable for all investors, as loss of all invested capital may occur. You should not risk more than you are prepared to lose. Before deciding to trade, you need to ensure that you understand the risks involved and consider your investment objectives and level of experience. Seek independent advice, if necessary.
Solid ECN Securities LLC does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of a CFD. Solid ECN Securities LLC is not a financial advisor and all services are provided on an execution-only basis. This communication is not an offer or solicitation to enter into a transaction and shall not be construed as such.
This website is not directed at any jurisdiction and is not intended for any use that would be contrary to local law or regulation.
By using you agree to use our cookies to enhance your experience.
Solid ECN Securities LLC is authorized and regulated by the Comoros Union with reference number HY00623411.
Disclaimer 1: The information provided on this site is not intended for residents of any country or jurisdiction where its distribution or use would violate local laws or regulations.
Disclaimer 2: Solid ECN Securities LLC and it affiliates does not provide services to residents of the USA, Japan, Canada, Australia, the Democratic Republic of Korea, European Union, United Kingdom, Iran, Syria, Sudan and Cuba.
Copyright All Right Reserved 2023