U.S. Fed Chair Powell’s Testimony
The key event for the day will be U.S. Fed Chair Powell’s Testimony scheduled at 1800 GMT/2330 IST. As head of the central bank, which controls short term interest rates, he has more influence over the nation’s currency value than any other person. Traders scrutinize his public engagements as they are often used to drop subtle clues regarding future monetary policy.
The testimony usually comes in 2 parts: first the Fed Chair reads a prepared statement and then the committee will hold a question and answer session. Since the questions are not known beforehand they can make for some unscripted moments that lead to heavy market volatility.
Key Comments by Fed Chair Powell in prerelease testimony:
- Fed will do everything to support economy for as long as it takes to complete recovery
- Inflation has increased notably in recent months
- As transitory supply effects abate, inflation expected to drop back toward 2%
- Unemployment rose in May, but job growth is expected to pick up
- This year’s growth is on track to be the fastest in decades
- Job growth should accelerate in the next few months
Let’s see how Gold has reacted during the previous data release:
March 23 & 24:
Feb 23 & 24:
- Gold falls noticeably ahead of U.S. Fed Chair Powell’s Testimony and touches $1,772 mark.
- The pair made intraday high at $1,790 and low at $1,772 mark.
- A day chart and H1 chart with triple EMA suggests bearish trend for the time being.
- A sustained close above $1,790 requires for the upside rally.
- Alternatively, a consistent close below $1,770 will check further supports.
Take a look and do trade wisely!