Gold Analysis May 20: Gold Under Pressure Below 4500
Gold is facing downward pressure, dropping below the 4500 mark as US-Iran negotiations reach a deadlock and expectations of a hawkish monetary policy from the Federal Reserve (Fed) continue to support the US Dollar. Investors today should focus on the FOMC meeting minutes, scheduled for release late tonight.
Inflation Fears and Interest Rate Hikes
Amid the ongoing Middle East conflict with no clear resolution and the Strait of Hormuz remaining largely closed, traders are increasingly anticipating a potential Fed interest rate hike later this year. Rising oil prices continue to fuel inflation concerns. According to the CME FedWatch Tool, the market currently predicts a 35% probability of a 25 basis point (bps) hike in October, rising to approximately 42% for the December meeting.
US-Iran Geopolitical Tensions
Meanwhile, traders remain focused on the indirect negotiations between the US and Iran, which remain stalled over disagreements regarding Iran's nuclear program. US President Donald Trump stated on Tuesday that military action remains an option if talks fail, adding, “We may have to deal Iran another blow.” Trump indicated that the United States is giving Iran a limited window for negotiations, suggesting a decision on military action could be made within the next two to three days or by early next week.
Focus on FOMC Minutes
Market participants are now awaiting the minutes of the Federal Reserve meeting, set to be released at 1:00 AM Thursday (Hanoi time), to search for further clues regarding the Fed's policy outlook.
For more details, visit Blog Ngoai Hoi ( blogngoaihoi (.) co
Gold is facing downward pressure, dropping below the 4500 mark as US-Iran negotiations reach a deadlock and expectations of a hawkish monetary policy from the Federal Reserve (Fed) continue to support the US Dollar. Investors today should focus on the FOMC meeting minutes, scheduled for release late tonight.
Inflation Fears and Interest Rate Hikes
Amid the ongoing Middle East conflict with no clear resolution and the Strait of Hormuz remaining largely closed, traders are increasingly anticipating a potential Fed interest rate hike later this year. Rising oil prices continue to fuel inflation concerns. According to the CME FedWatch Tool, the market currently predicts a 35% probability of a 25 basis point (bps) hike in October, rising to approximately 42% for the December meeting.
US-Iran Geopolitical Tensions
Meanwhile, traders remain focused on the indirect negotiations between the US and Iran, which remain stalled over disagreements regarding Iran's nuclear program. US President Donald Trump stated on Tuesday that military action remains an option if talks fail, adding, “We may have to deal Iran another blow.” Trump indicated that the United States is giving Iran a limited window for negotiations, suggesting a decision on military action could be made within the next two to three days or by early next week.
Focus on FOMC Minutes
Market participants are now awaiting the minutes of the Federal Reserve meeting, set to be released at 1:00 AM Thursday (Hanoi time), to search for further clues regarding the Fed's policy outlook.
For more details, visit Blog Ngoai Hoi ( blogngoaihoi (.) co
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Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.