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Today gold enters the expected waiting period
Hello everyone! Is today’s market volatility worrying you and raising your blood pressure?
Gold price dropped to around $4,500 today!
It’s like sliding down a hill without brakes!
I know a lot of you are wondering: Will the bull market last? Should we cut our losses? Is it a good time to buy when prices are falling?
First, the Federal Reserve did not adjust interest rates and maintained them at 3.50% to 3.75%.
But that’s to be expected. The market does not expect interest rates to fall.
The real surprise was what Powell said at the press conference.
First: 7 out of 19 Federal Reserve officials believe it is not appropriate to cut interest rates this year! what does that mean?
This means that the consensus within the Federal Reserve on “expansionary monetary policy” is rapidly fading!
Second: Powell’s tough words. “If we don’t see progress in lowering inflation, we won’t cut interest rates.” He even admitted that the meeting discussed “the possibility of another rate increase!”
Isn’t this just hiding gold? Third: Is it ironic that high oil prices have become poison for gold?
This involves one of the most paradoxical logics of our time. Due to the ongoing conflict in the Middle East, the Strait of Hormuz is almost deserted, and the daily ship throughput has dropped from 138 ships to less than 5 ships.
Oil prices have risen to $100 a barrel.
Logically speaking, shouldn’t this be a huge gain?
mistake! The current situation is: “Oil prices rise → Inflation becomes more stubborn → The Federal Reserve dares not cut interest rates and does not even plan to raise interest rates → The cost of holding gold rises → Gold prices fall.”
This is the so-called “interest rate logic”, which temporarily trumps the “risk aversion logic”.
Markets are now focused on the risk of rising interest rates rather than the safety that gold provides as a safe haven.
In short, the specter of “stagflation” is beginning to loom, but the current focus of the market is “inflation” rather than “stagflation.”
Fourth: The turmoil in the Middle East is intensifying.
The situation was already chaotic, but another big thing happened today.
Riyadh, the capital of the Kingdom of Saudi Arabia, was hit by a ballistic missile today! Just one day ago, ministers from 12 countries including Saudi Arabia and the United Arab Emirates held a meeting to condemn Israel.
What is this called? This is what is called “negotiating and fighting at the same time.”
Saudi Arabia announced that it reserves the right to take military action.
what does that mean? This means that the conflict is not over yet and could escalate from a conflict between the United States and Israel against Iran to a full-scale war sweeping the entire Middle East.
This volatile market is burning gold, but it’s also filled with injustice and powerlessness.
Trading strategy:
Basic logic: The market is currently in a period of sharp decline, technical indicators have collapsed across the board, and the news is mixed.
Don’t be tempted to buy when prices are falling just because you think they’re “going to fall a lot”! Don’t try to predict the bottom! Your priority now is survival.
If the position is large, lock the current profit and set a stop loss order for the remaining position. Never hold a losing position because an abyss may be waiting for you.
Today’s short selling strategy:
Key focus range: $4650-$4680. If the price stabilizes in this range, you can try short selling with a psychological target of $4,600 or even lower.
Place a stop loss order at $4,720.
Not recommended to buy if you are not an experienced trader.
I know you love trading, and I know you want to recover your losses.
But I hope you will take my advice. The best thing to do now is to wait and not enter the market.
Wait for the market to stabilize and the candle pattern to stabilize until there is a clear bottom formation signal before entering the market.
You can’t make all the money in the world, but you can lose it all.
