{"id":69696,"date":"2023-09-18T15:10:24","date_gmt":"2023-09-18T12:10:24","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=69696"},"modified":"2025-11-19T14:20:19","modified_gmt":"2025-11-19T12:20:19","slug":"gold-appears-to-have-reversed-trajectory","status":"publish","type":"post","link":"https:\/\/www.ironfx-cn.com\/ru\/gold-appears-to-have-reversed-trajectory\/","title":{"rendered":"Gold appears to have reversed trajectory"},"content":{"rendered":"

Gold at the time<\/a> of this report, seems to be moving in an upward fashion, since last week. We note the potential for high volatility in the gold market, due to the numerous high-impact monetary policy decisions from various central banks including the FED, BOE and BOJ which are due to be released during the week. In this report, we aim to shed light on the catalysts driving gold\u2019s price, assess its future outlook and conclude with a technical analysis. <\/p>\n\n\n\n

Gold Market Analysis<\/strong><\/h2>\n\n\n\n

FED\u2019s interest rate decision is due out later this week<\/strong><\/h3>\n\n\n\n

The Fed\u2019s<\/strong> interest rate decision is due to take place this Wednesday<\/strong>. The majority<\/strong> of market participants are anticipating<\/strong> that the Fed<\/strong> will remain on hold<\/strong> during their next meeting and as such, the potential of the Fed<\/strong> remaining on pause<\/strong> may have weakened<\/strong> the greenback<\/strong> against its counterparts, as the Fed\u2019s<\/strong> counterparts may continue hiking<\/strong> in the future whilst the Fed<\/strong> remains on hold, thus potentially further weakening the dollar<\/strong>.<\/p>\n\n\n\n

As such given the inverse relationship between the precious<\/strong> and the greenback<\/strong>, the weakening of the dollar<\/strong> may have allowed for investors to purchase gold<\/strong>, as a weaker greenback<\/strong> would make gold<\/strong> cheaper for overseas<\/strong> investors and as such may have attributed<\/strong> to the rise<\/strong> of the precious<\/strong> metal<\/strong>.<\/p>\n\n\n\n

London Bullion Market Association seeks to create a centralized database<\/strong><\/h3>\n\n\n\n

According to Reuters<\/a>, the London Bullion Market Association <\/strong>\u0438\u043b\u0438 LBMA<\/strong> for short, called last Thursday for proposals<\/strong> from service<\/strong> firms in order to create a secure global<\/strong> database<\/strong> whose function would be to increase trust in the gold<\/strong> market\u2019s<\/strong> value chain. This potentially being due to the fact that precious metal (gold)<\/strong> can be considered<\/strong> untraceable<\/strong> given that in can be smelted<\/strong> down and then re-formed into \u201cnew\u201d gold<\/strong> bars. As such, any previous<\/strong> markings<\/strong> which may been used to identify or even trace<\/strong> the origins<\/strong> of the precious<\/strong> metal<\/strong>, could be theoretically<\/strong> wiped<\/strong> clean<\/strong> and thus may allow the \u201cnew\u201d bar<\/strong> to conceal<\/strong> its origins<\/strong> by \u201cgaining\u201d a new identity<\/strong>. Furthermore, given the LBMA\u2019s <\/strong>status a major gold<\/strong> hub it could potentially influence<\/strong> the acquisition of the precious <\/strong>from gold<\/strong> suppliers<\/strong> it may deem as non-compliant, thus potentially restricting<\/strong> slightly<\/strong> the supply<\/strong> of gold<\/strong> and combined with the potential increased costs<\/strong> to suppliers <\/strong>toprovide adequate documentation,<\/strong> it may be passed on to consumers, which could lead to higher prices<\/strong> of the precious<\/strong> metal.\u00a0 However, for such an event to occur, the LBMA<\/strong> may need to enlist a coalition<\/strong> of nations<\/strong> to impose<\/strong> \u0438 enforce<\/strong> any potential legislation<\/strong> which may prove difficult<\/strong> given that it may not be profitable<\/strong> for certain \u0441\u0442\u0440\u0430\u043d<\/strong> and their suppliers<\/strong> to enforce or provide the necessary documentation to the LBMA<\/strong>.<\/p>\n\n\n\n

In conclusion, the LBMA\u2019s<\/strong> intention to create a global<\/strong> registry of gold<\/strong>, is an interesting proposal, yet in our view it is likely that the proposal<\/strong> may encounter fierce<\/strong> resistance<\/strong> from nations<\/strong> who are more prone<\/strong> to illicit<\/strong> activities, or who may unwilling<\/strong> to lose their competitiveness<\/strong> as gold<\/strong> procurers<\/strong>, as producers<\/strong> \u0438 suppliers<\/strong> may be forced to bear the added<\/strong> cost<\/strong>. Therefore, despite the LBMA\u2019s proposal, we do not anticipate there to be any significant market reaction.<\/p>\n\n\n\n

Technical Analysis – Gold report<\/strong><\/h2>\n\n\n\n

XAUUSD H4 Chart<\/em><\/strong><\/h3>\n\n\n\n
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