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


  • Joy as Koh Ker Temple registered by UNESCO

    Cambodia's Koh Ker Temple archaeological site has been officially added to UNESCO’s World Heritage List, during the 45th session of the World Heritage Committee held in Riyadh, Saudi Arabia, on September 17. The ancient temple, also known as Lingapura or Chok Gargyar, is located in

  • Famed US collector family return artefacts to Cambodia

    In the latest repatriation of ancient artefacts from the US, a total of 33 pieces of Khmer cultural heritage will soon return home, according to the Ministry of Culture and Fine Arts. In a September 12 press statement, it said the US Attorney’s Office for the

  • Tina rebuffs ‘false claims’ over falling paddy price

    Agriculture minister Dith Tina has shed light on the trade of paddy rice in Battambang – Cambodia’s leading rice-producing province – in a bid to curb what he dubs a “social media fact distortion campaign” to destabilise the market. While acknowledging that the prices of paddy

  • Cambodia set to celebrate Koh Ker UNESCO listing

    To celebrate the inscription of the Koh Ker archaeological site on UNESCO’s World Heritage List, the Ministry of Cults and Religion has appealed to pagodas and places of worship to celebrate the achievement by ringing bells, shaking rattles and banging gongs on September 20. Venerable

  • Kampot curfew imposed to curb ‘gang’ violence

    Kampot provincial police have announced measures to contain a recent spike in antisocial behaviour by “unruly’ youth. Officials say the province has been plagued by recent violence among so-called “gang members”, who often fight with weapons such as knives and machetes. Several social observers have

  • PM outlines plans to discuss trade, policy during US visit

    Prime Minister Hun Manet is set to meet with senior US officials and business leaders during his upcoming visit to the US for the UN General Assembly (UNGA), scheduled for September 20. While addressing nearly 20,000 workers in Kampong Speu province, Manet said he aims to affirm