A Short Term Outlook: XAU/USD (Gold); April 08, 2022

A Short Term Outlook: XAU/USD (Gold)

Today’s U.S. session is almost empty as no key economic indicator or event has scheduled to release.

• Important to note today that U.S. dollar index strengthend to 100 during European hours and hits fresh 2 – years high on the back of a more aggressive pace of Federal Reserve interest rate hikes.
• The recently released Fed’s Meeting Minutes confirmed that many FOMC members were prepared to raise interest rates in 50 – basis-point increments in coming months.
• On the other end, ECB’s Meeting minutes released yesterday suggested that policy makers are keen to control rising inflation, but the eurozone has so far taken a more cautious approach than any other Central banks, weakening the euro. In addition, on going elections in France has added more pressure on the euro.
• U.S. dollar appreciates noticeaby against Japanese yen too as the U.S. raises interest rates while the Bank of Japan intervenes in the bond market to keep rates low.
• Sterling too depreciating sharply against U.S. dollar over the uncertainty over Russia – Ukraine conflicts.
• Aussie lost ground versus U.S. dollar as RBA suggested that Interest rate hike will be economic data driven only.

Let’s check out key headlines from Russia –Ukraine:

• The UNGA Resolution on suspending Russia’s membership in the UNHRC is an unlawful and politically motivated act of punishment: Ministry of foreign affairs of Russia.
• It was a good decision in UN General Assembly.93 countries voted in favour to exclude Russia from Human Rights Council given the terrible images from Ukraine. It gives a message to world that UNGA considers Russia as unfit for human rights body: WJ Lindner, German Envoy to India.
• Russia is headed for the deepest recession since the collapse of the Soviet Union, Britain predicted as it estimated that over 275 billion pounds ($358.52 billion) of Russian money has been frozen by international sanctions in recent weeks.
• Russian central bank cuts key rate, hiked after troops sent to Ukraine, from 20 to 17 percent.
• More than 30 people killed and over 100 wounded in a Russian rocket strike on a train station in east Ukraine as civilians tried to evacuate to safer parts of the country, according to the state railway company.
• World food prices hit ‘highest levels ever’ due to Ukraine war: FAO.
• US bans exports to three Russian airlines for sanctions violations.
• Joe Biden to sign bills to scrap Russia, Belarus trade status, reports ANI.

source:Timesofindia

Technical View:

XAU/USD (GOLD):

• Gold remains volatile in early U.S. session and touches $1,939 mark.
• Today pair made intraday high at $1,939 and low at $1,927 mark.
• A triple EMA on a day chart and H1 chart suggest bullish trend for the time being.
• A sustained close above $1,934 on H1 chart requires for the upside rally.
• Alternatively, a consistent close below $1,915 will check further supports.

Take a look and do trade wisely!
Good Luck