Logo of Phnom Penh Post newspaper Phnom Penh Post - Gold prices retreat ahead of Fed interest rate release

Gold prices retreat ahead of Fed interest rate release

Content image - Phnom Penh Post
Chhea Chhayheng, PPLS business manager.

Gold prices retreat ahead of Fed interest rate release

The price of gold has been in a bearish stance for the past few days after six consecutive weeks of gains, rising from around $1,791 to $1,925 per ounce.

PP Link Securities business manager Chhea Chhayheng says the drop was significant.

With the daily charts, the bearish trend started last Thursday when gold, which had been looking to break $1,950 per ounce, fell to around $1,920. Wednesday’s opening price was $1,928.

Chhayheng says prices below the strong technical support of around $1,880 per ounce were the next short-term targets for selling, while the historical resistance of $1,950 per ounce was the uptrend for February.

“For the long-term long perspective, based on the daily candlestick, there is a three-month uptrend, and the next upward price target is to achieve a closing price above the strong resistance of $2,000 per ounce,” he says.

The pressure on gold is being weighed by the fundamentals of US interest rates and employment figures, both siding with gold’s reverse-price currency, the US dollar.

Investing.com’s Ambar Warrick said on Monday: “Gold prices retreated on Tuesday, coming under pressure from a stronger dollar as caution kicked in ahead of a Federal Reserve meeting this week, while broader metal markets also ticked lower.

“The yellow metal marked a slow start to the week ahead of the conclusion of a two-day Fed meeting on Wednesday, where the bank is widely expected to raise interest rates by 25 basis points.”

FXStreet reported on Monday: “The gold price has drifted lower for a third day and is testing structure as we head towards key events this week, including the Federal Reserve and the European Central Bank as the key events, the Bank of England and also US jobs data.”

The forecast, based on Forexfactory.com, shows the change in US employment figures in January was 190,000, slightly lower than the previous month, with the unemployment rate up to 3.6 per cent from 3.5 per cent, while average hourly earnings remain at 0.3 per cent.

“The expectations for the US jobs data are very tight, causing the price of gold to so far move in a range of $1,934 per ounce to $1,920.

“The hourly chart indicates that the price is being pressured into the day’s lows as traders get ready for the Fed meeting on Wednesday,” Chhayheng says.​

Content image - Phnom Penh Post


  • Bareknuckle champion wants Kun Khmer fighter

    Dave Leduc, who is the current openweight Lethwei boxing champion in Myanmar, has announced that he will travel to Cambodia this year to challenge SEA Games gold medallist Prum Samnang any time that is convenient, after their planned match later this month in Slovakia was

  • Five-year-old Hanuman dances his way into hearts of Cambodia

    A young talent from a new-established settlement has emerged, captivating the online world with his mesmerising performances of the traditional Cambodian monkey dance. Roeun Kakada is a five-year-old prodigy who has taken the social media sphere by storm with his exceptional dance skills and dedication

  • Fresh Covid warnings as Thai hospital fills

    A senior health official reminds the public to remain vigilant, as neighbouring countries experience an increase in Covid-19 cases, with the latest surge appearing to be a result of the Omicron XBB.1.5 sub-variant. Or Vandine, secretary of state and spokeswoman for the Ministry of Health,

  • Honda shutters Siem Reap football club

    Japanese football legend Keisuke Honda, the owner of Siem Reap football club Soltilo Angkor FC, has been forced to shut the club down, after it failed to attract sponsorship for the upcoming season. Honda, the former manager of the Cambodia men's national football team, said

  • Hun Sen warns of regional tensions

    ASIA is becoming a dangerous geopolitical hotspot, with several countries announcing that they intend to send naval vessels towards Southeast Asia and on to the South China Sea, warned Prime Minister Hun Sen. “Heated geopolitical issues can easily escalate, namely to war. I am not

  • PM declares ASEAN Para Games open

    The 12th ASEAN Para Games officially kicked off on the evening of June 3 at Morodok Techo National Stadium in Phnom Penh, with a spectacular opening ceremony featuring fireworks and performances by some of the Kingdom’s most accomplished talents. Tens of thousands of sports fans