{"id":306582,"date":"2024-05-21T18:52:46","date_gmt":"2024-05-21T13:22:46","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=306582"},"modified":"2024-05-21T18:52:46","modified_gmt":"2024-05-21T13:22:46","slug":"gold-price-corrects-as-central-banks-signal-reluctance-to-lower-interest-rates-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/gold-price-corrects-as-central-banks-signal-reluctance-to-lower-interest-rates-crypto-news\/","title":{"rendered":"Gold price corrects as central banks signal reluctance to lower interest rates &#8211; Crypto News"},"content":{"rendered":"<p><\/p>\n<div id=\"fxs_article_content\">\n<ul>\n<li><strong>Gold price is correcting lower after touching an all-time high of $2,450 on Monday.\u00a0<\/strong><\/li>\n<li><strong>The pullback appears to be driven by central banks communicating a reluctance to lower interest rates.\u00a0<\/strong><\/li>\n<li><strong>Acute bearish divergence on the daily chart could indicate a deeper correction may follow.\u00a0<\/strong><\/li>\n<\/ul>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" data-fxs-autoanchor=\"\" href=\"https:\/\/www.fxstreet.com\/markets\/commodities\/metals\/gold\">Gold price<\/a> (XAU\/USD) retreats to the $2,420s on Tuesday as commentary from central bank policymakers around the globe reveals a reluctance to commit to lowering interest rates. The precious metal tends to perform\u00a0poorly in an environment of higher interest rates because of the returns investors can reap by remaining in cash or bonds.\u00a0<\/p>\n<p>Persistent geopolitical concerns stemming from conflicts in the Middle East and Ukraine, however, are acting as a positive counterweight for Gold price. Gold hoarding by emerging markets and BRICS nations\u2019 central banks as an insurance policy against Western sanctions \u2013 that usually target US Dollar (USD) or Euro (EUR) reserves \u2013\u00a0is a further supporting factor.\u00a0\u00a0<\/p>\n<h2 class=\"fxs_headline_medium\">Gold price retreats on shift in outlook for interest rates\u00a0\u00a0<\/h2>\n<p>Gold price pulls back on Tuesday after central bankers in the US and Australia not only refuse to commit to lowering interest rates but also discuss the possibility of raising them.\u00a0<\/p>\n<p>On Monday, <a rel=\"nofollow noopener\" target=\"_blank\" data-fxs-autoanchor=\"\" href=\"https:\/\/www.fxstreet.com\/macroeconomics\/central-banks\/fed\">Federal Reserve Bank<\/a> of Cleveland President Loretta Mester said the Fed could \u201ceven raise them (rates)\u201d if inflation rose, and that it was \u201cno longer appropriate\u201d to expect the Fed to make three cuts this year.\u00a0<\/p>\n<p>On Tuesday morning, the Reserve Bank of Australia (RBA) released the minutes from its May meeting, which revealed that the board of governors had discussed the possibility of raising interest rates. It was the first time in many months they had discussed policy tightening.\u00a0<\/p>\n<h2 class=\"fxs_headline_medium\">Technical Analysis: Gold price pulls back, RSI diverging<\/h2>\n<p>Gold price (XAU\/USD) has pulled back from all-time highs at around $2,450 on Tuesday after forming a Shooting Star Japanese candlestick pattern on Monday. This candlestick pattern occurs when the price reaches a new high and then retreats to close near its low. It is a bearish sign after an uptrend, especially when followed by a red bearish candlestick on the next day, as is currently the case. If Tuesday ends as a red down day it could be a sign of a deeper correction to come.\u00a0\u00a0<\/p>\n<p>However, if Tuesday ends as a green bullish day, it will reduce the significance of the Shooting Star and could be a sign that the dominant bullish trend is more likely to continue.\u00a0<\/p>\n<h3 class=\"fxs_headline_medium\">XAU\/USD Daily Chart<\/h3>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/editorial.fxstreet.com\/miscelaneous\/_XAU_USD_2024-05-21_10-17-15-638518830982303922.png\"><\/a><\/p>\n<p>The Relative Strength Index (RSI) momentum indicator shows acute bearish divergence with price on the daily chart, providing further evidence that a correction may be about to unfold. Although the Gold price rose above the April 12 peak to make a higher high on May 20, the RSI failed to make a higher high. This is a bearish indication, suggesting a greater chance of a pull-back evolving.\u00a0<\/p>\n<p>If a correction unfolds, Gold will probably fall to support at the upward-sloping trendline in the $2,360s.\u00a0<\/p>\n<p>However, the precious metal\u2019s short-medium and long-term trends are bullish, and given the old adage that \u201cthe trend is your friend\u201d, the odds favor an eventual recovery even if there is a correction.\u00a0<\/p>\n<p>A break above the new $2,450 all-time high would likely continue the rally to the next target at the psychologically significant $2,500 level.<\/p>\n<p>\u00a0<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Gold price is correcting lower after touching an all-time high of $2,450 on Monday.\u00a0 The pullback appears to be driven by central banks communicating a reluctance to lower interest rates.\u00a0 Acute bearish divergence on the daily chart could indicate a deeper correction may follow.\u00a0 Gold price (XAU\/USD) retreats to the $2,420s on Tuesday as commentary [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":17161,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[201,248,251,246,257,2321,484,255,250,252,247,253,249,5212,308,256,254,485],"class_list":["post-306582","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-blockchain","tag-bsc","tag-chainlink","tag-coin","tag-cryptocurrency","tag-fundamental-analysis","tag-gold","tag-gta","tag-looks-rare","tag-oracle","tag-polygon","tag-quickswap","tag-safe-moon","tag-seo","tag-technical-analysis","tag-wallet","tag-wordpress","tag-xauusd"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/306582","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=306582"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/306582\/revisions"}],"predecessor-version":[{"id":306583,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/306582\/revisions\/306583"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/17161"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=306582"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=306582"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=306582"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}