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Gold under pressure as Powell is Fed chairman again

on 2021-11-23
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Biden nominated Powell to continue to be chairman of the Federal Reserve, and he appointed Dr. Brainard replacing Richard Clarida as the Vice Chairman of the Board. As far as I know, Dr. Brainard is more Dovish than Biden.

Powell's appointment comes as the Federal Reserve looks to begin easing monetary policy while the Fed is starting to cut its monthly bond purchases earlier this month. However, Powell said now is not the time to raise interest rates yet. 

The news created pressure on gold selling as the US dollar strengthened. The news pushed gold to $ 1,802 and boost the US dollar to its highest level since July 2020.

However, gold prices are still benefiting as markets see the US Federal Reserve not rushing to raise interest rates. Also, the inflation in October saw an annual increase of 6.2%, the biggest gain. In 31 years.

Recommendation: 

Investor shall buy gold at 1802
Take profit: 1840
Stop loss: 1785

Analyzed by៖ Mr. Tum Sothoeurn Assistant to Head of Fintech

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