GOLD → A pullback to resistance is forming before the news

19 May 2023

Gold has been strengthening to local resistance and liquidity area since the opening session. U.S. Federal Reserve Chairman Powell's speech today! What to expect from the price in Friday's trading session?

Gold price is strengthening 0.85% from the local low and most likely aiming for the liquidity area. The global trend is broken (breakdown of the price channel and the left charts from D1 indicate the formation of correction and downward movement)
Analysts expect the Fed to raise the rate, which could have a negative effect on gold. The dollar continues to strengthen and is aiming for a strong 105 zone.

• Bullard (Fed) supports further rate hikes as a safeguard against rising inflation.
  
• Logan (Fed) : current data does not justify a pause for a rate hike
  
• Barkin (Fed) :
  - Lesson number one from the 1970s is not to move to monetary policy easing too soon
  - If additional rate hikes are needed to lower inflation, that's fine with me.
  

A strong resistance and liquidity area of 1976-1993 is forming on the chart, there is a possibility that Market-Maker may pull the price up to this area before further declines.

Strong resistance: descending line, 1976, 1983, 1993
Strong support: 1953, 1949, 1936
I expect that the analysts' opinion can be confirmed and we will see the price fall to the area of 1936, but again - the news are an unpredictable phenomenon and there is a share of probability that the price can strengthen to 1993 and even to 2000.

Regards to R. Linda!