Yesterday gold decreased by 2.8% at once, it is the biggest daily drop since March 9. In addition, a "bearish engulfing" appeared on the graph, which is a sign of price decline in the future. The dynamics looks too negative for a defensive asset. However, current dollar doesn't give us hope for the stable growth of gold as well.
A Fed meeting tomorrow will determine the coming perspectives for gold:
1) if monetary policy tightening is not as sharp as it is expected, gold could rise quickly to the 1850 level.
2) in case of more drastic Fed actions to fight against inflation, gold would move to the May minimum around 1790.
This content is for informational purposes only and is not intended to be investing advice.
