Yesterday, the U.S. Senate passed the budget bill vote with a result of 40-60.
This move has boosted the precious metals market as the government’s reopening is expected to resume the flow of economic data that had been disrupted in recent times, contributing to higher expectations that the FED will continue to cut interest rates by the end of this year.
However, for the government to officially reopen, the House of Representatives still needs to pass the bill, meaning the U.S. government will have a short period before it can fully resume operations.
Therefore, at the moment, gold is merely reacting positively to the news, and it is likely that today there will be a slight correction as investors stabilize their sentiment and remain cautious ahead of the CPI data release on Thursday night.
Technical Analysis:
In the short term, gold prices are likely to correct toward the 404x – 406x zone according to the 0.5 – 0.618 Fibonacci retracement levels before strongly breaking out to the 42xx area.
Trí Hùng
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