Pre-FOMC XAUUSD Forecast | Wednesday 14th December 2022
Hi everyone, today I will be talking about a possible XAUUSD long trade using fundamental analysis.
Context
1. CPI print yesterday came out better than expected
2. CPI m/m at 0.1% vs forecast of 0.3%
3. Core CPI m/m at 0.2% vs forecast of 0.3%
Given the evidence of a cool down in inflation, the Fed's previous aggressive rate hikes has been coming to effect.
This could potentially solidify the stance of a slow down in rate hikes and the Fed could adopt a more dovish stance in the market.
This will result in XAUUSD ticking high, and all eyes would be on FOMC tonight.
Personally, I believe that the Fed would be hiking by 50bps and hint at a lower terminal rate, this will result in validation of our potential long trade in GOLD.
Context
1. CPI print yesterday came out better than expected
2. CPI m/m at 0.1% vs forecast of 0.3%
3. Core CPI m/m at 0.2% vs forecast of 0.3%
Given the evidence of a cool down in inflation, the Fed's previous aggressive rate hikes has been coming to effect.
This could potentially solidify the stance of a slow down in rate hikes and the Fed could adopt a more dovish stance in the market.
This will result in XAUUSD ticking high, and all eyes would be on FOMC tonight.
Personally, I believe that the Fed would be hiking by 50bps and hint at a lower terminal rate, this will result in validation of our potential long trade in GOLD.