$PAXG ⚠️ Gold Alert $PAXG : Fed Decision Today Could Spoil the Price!
The price made a quick bounce into the 4.330 range, but the macroeconomic backdrop works against this move in the short term.
Today we have the Federal Reserve (Fed) interest rate decision. If the U.S. central bank confirms the hard line and raises rates to fight inflation, the global dollar and U.S. Treasury yields will jump sharply.
So what happens? Gold tends to fall mechanically as capital flees to U.S. fixed-income assets.
On the chart, PAXG is testing the top of a descending channel on the 4h timeframe. If the Fed is aggressive, the rejection at this resistance level will be strong. I’m watching for the loss of supports to look for healthy re-entries in the 4.279 to 4.269 area, and who knows—maybe testing the technical low near 4.200.
The price made a quick bounce into the 4.330 range, but the macroeconomic backdrop works against this move in the short term.
Today we have the Federal Reserve (Fed) interest rate decision. If the U.S. central bank confirms the hard line and raises rates to fight inflation, the global dollar and U.S. Treasury yields will jump sharply.
So what happens? Gold tends to fall mechanically as capital flees to U.S. fixed-income assets.
On the chart, PAXG is testing the top of a descending channel on the 4h timeframe. If the Fed is aggressive, the rejection at this resistance level will be strong. I’m watching for the loss of supports to look for healthy re-entries in the 4.279 to 4.269 area, and who knows—maybe testing the technical low near 4.200.