Today and Friday (July 22), gold fluctuated around $1,716 an ounce in intraday trading, and the daily linegold priceThe trend was adjusted slightly, and the price of gold remained stable and fluctuated.
ECB hikes by 50 basis points, bets that the Bank of England will follow solidifies
The ECB’s move helped cement expectations for more aggressive rate hikes elsewhere in Europe. Investors now believe that a 50 basis point rate hike by the Bank of England next month is almost a certainty. It would be the largest rate hike by the Bank of England since it set monetary policy independently in 1997. Traders expect the Bank of England to raise rates by about 48 basis points on Aug. 4, up from 45 basis points previously. With markets still grumbling over the BoE’s failure to raise rates last November, this represents a sizable bet that the Bank of England is about to follow suit with a 50 basis point hike.
After gold touched $1,720.2 yesterday, it ended strongly and closed at $1,718.6. The daily line closed with a big Yang line with a long lower shadow.
Gold continues to go long today, the first position below is around $1713, and the strong market gold starts to rise near here. If you continue to step back, the price of gold will be supported at around $1701 and $1695. If you step back and rely on the support above, continue to go long. That’s it.
Gold Investment Network
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Responsible editor: Zhang Jingdi