Market Outlook
Gold price rebounds as Powell repeats disinflation. - Zeal Capital Market

Gold price rebounds as Powell repeats disinflation.

20-02-2023 08:11

“Powell did not switch to hawkish stance despite bullish Nonfarm Payrolls report.”

Gold price rebounds from lower levels while US dollar fell from one-month high after US Federal Reserve Chair Jerome Powell repeats disinflation comment. During question-and-answer session at Economic Club of Washington, Powell noted that their goal is to bring inflation back to 2%, which would be a “bumpy” process. However, he re-emphasizes that US is currently entering into disinflation phase, which may take a longer period of time to normalize.

Technical Analysis

Gold price rebounds as Powell repeats disinflation. - Zeal Capital Market

XAUUSD, H4: Gold price rebounds from the low of 1824 after extending its losses following previous breach of 1870. The formation of bullish divergence signal from MACD suggests gold price to advance further up in the short-term, towards the direction of 1870.

Resistance level: 1870, 1910

Support level: 1824, 1775

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