◽️ Last week wee see an intense flight for gold, main reason was escape from the inflationary recession.
◽️ Despite the Federal Reserve’s hawkish policies, inflation remains high, and this is a major sign of recession, So gold got a great support.
◽️ Investors have deep doubts about the Fed’s ability to contain inflation.
◽️ The rise in gold prices came after the US Department of Labor announced that the consumer price index in May had risen 8.6 percent from a year earlier.
◽️ The Federal Reserve’s decision on this week could put more short-term pressure on gold.
◽️ The Federal Reserve is likely to raise interest rates by 50 basis points on Wednesday, June 15
🔻 So our forecast is short-term bearish because the fed monetary policy
🔻 But it has a long way to go because we predict the Federal Reserve cannot reduce inflationary pressures
🔻 The market calms down a bit this week after digestion, but as we mentioned earlier, gold stays bullish for a long time.