July 22, US dollars continue for the second day in a row.
Two trading days rose, gold prices held steady, investors waited for the Fed to decide on interest rates next week. Oil prices rose the biggest in more than a week as Iran's seizure of a British tanker raised fears of escalating tensions in the Middle East, with oil rising more than 1 percent, rising 2.5 percent in intraday trading and recovering the $64 mark.
XAUUSD
Gold fell slightly by $1.27 on Monday, seemingly stable as the dollar continued to rise, trading at $1424.08 an ounce at the time of publication.
Geopolitical relations are still in a state of tension, and there are reports that the Iranian army intercepted a tanker flying the British flag in the Strait of Hormuz. The market is worried that the conflict between Iran and the United Kingdom and the United States may escalate in the next few weeks. If the United States conducts air strikes against Iran, it will interrupt the tanker transport in the Strait of Hormuz, which will be a good environment for gold and silver. In a market that is expected to go higher, a small sell-off is completely normal, which gives us reason to believe that the price of gold will rise to $1,500. At the same time, silver prices are also rising. After silver prices rose four days to a one-year high last week, silver prices will also support gold.
On the technical side, the daily chart shows that gold has already broken upward on the upper rail of the consolidation triangle last week. It is normal for a short-term callback after breaking the pattern. Gold is now supported at $1,423 per ounce on the original triangle. If the position is confirmed, the gold will continue to rise and be the first to challenge the previous high of $1,452.81 per ounce.
AUDUSD
The Australian dollar continued to fall on Monday, falling after rising to a daily high of 0.7056, falling 14:00 and trading at 0.7028 at the time of publication.
On Monday, when crude oil prices rose, the Australian dollar did not benefit as a commodity currency, but continued to fall. Traders also weighed on the prospects of the Fed's interest rate cuts as the market speculated that the European Central Bank issued a "quite radical" easing policy. The trend of US interest rate futures shows that traders expect the Fed to cut the interest rate range by 50 basis points by 23% at the policy meeting on July 30-31, which is lower than the 24% of last Friday night. McKenna said that it seems that the Fed will not cut interest rates sharply next week, which is more like a preventive rate cut, rather than the beginning of a long-term easing cycle. The US economy is still quite strong. The Australian dollar is expected to remain relatively weak.
On the technical side, the daily chart shows that the Australian dollar has formed a downtrend channel since January this year, and it still maintains its operation in the channel and has fallen back after reaching its recent high point last Thursday. It indicates that the downtrend channel is still valid. It is expected that the Australian dollar will continue to fall along the downtrend channel, with the initial target of 0.6995 as the previous low.
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