GOLD (XAUUSD) The gold market remains in a healthy position e | Sunny Mason Trading Central🇨🇭LegacyFX official 🏆

GOLD (XAUUSD)

The gold market remains in a healthy position even as the Federal Reserve looks to raise interest rates to nearly 3.5% this year and potentially to 4% next year. The precious metal has held up well following the Federal Reserve's decision to raise interest rates by 75 basis points, the biggest move in 28 years. The Federal Reserve was prompted to aggressively tighten monetary policy as inflation hit another 40-year high at 8.6% last month. If The Fed did not raise interest rates fast enough, then inflation would have continued to rise and if they move too fast, they risk a recession. Both scenarios are positive for gold. While gold is likely to outperform equities in the coming months, price is likely to remain quite neutral. Gold rebounded strongly over the past two days; however, the up swing lost momentum on Friday and the price has been trading in a narrow range consolidating between $1,841 and $1,857. Very short-term traders should monitor the range as a breakout would determine the next short-term direction, offering $7 downside and $5 upside potential.

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