gamesthatpayyoucrypto| Gold prices fell back as central banks signaled their reluctance to cut interest rates

Huitong Financial APP News--Before the U.S. market on Tuesday (May 21), spot gold prices fell back to US$2427 due to global central bank policymakersgamesthatpayyoucryptoComments from, say, they are reluctant to commit to interest rates. In environments with relatively high interest rates, precious metals tend to perform worse because investors can make returns by holding cash or bonds.

However, persistent geopolitical concerns over conflicts in the Middle East and Ukraine have played a positive balancing role in gold prices. Central banks in emerging markets and BRICS countries hoarding gold as a policy response to Western sanctions is a further supporting factor.

Shifts in interest rate outlook cause gold prices to fall

Gold fell back on Tuesday after central bank governors in the United States and Australia not only refused to commit to interest rates, but also discussed the possibility of raising interest rates.

Cleveland Federal Reserve Bank President Meister said on Monday that if inflation rises, the Fed may even "raise interest rates" and it is "no longer appropriate" to expect the Fed to cut interest rates three times this year.

On Tuesday morning, the Federal Reserve Bank of Australia released minutes of its May meeting, which showed the board discussed the possibility of raising interest rates. It was the first time in months that they were discussing tightening policy.

Technical analysis: Gold prices fall, relative strength index diverges

(Spot gold daily chart source: Yihuitong)

Gold prices fell back from a historical high of around $2450 on Tuesday and formed a meteor K-line pattern on Monday. This K-line usually appears when prices reach new highs and then fall back to close near their low. This is a bearish signal after an uptrend, especially when a negative line appears the next day. If Tuesday ends down, it could be a sign that deeper correction is coming.

However, if Tuesday ends with a rise, it will reduce the importance of the meteor and could become a sign that the dominant bullish trend is more likely to persist.

The Relative Strength Index (RSI) momentum indicator showed a significant bearish divergence from prices on the daily chart, further evidence that a correction may be imminent. Although gold prices rose above their April 12 peak and reached a higher high on May 20, the Relative Strength Index failed to reach a higher high. This is a bearish sign that a correction is more likely.

If there is a correction, gold could fall to the uptrend line support level of $2,360.

However, gold's short-to medium-and long-term trends are bullish, taking into account the "trend isgamesthatpayyoucryptoWith the old saying "your friend", even if there is a correction, there may eventually be a recovery.

If it breaks the all-time high of $2450, it may continue to rise to the next target, the important psychological level of $2,500.

Beijing time 20gamesthatpayyoucrypto:53, spot gold reported at 2427gamesthatpayyoucrypto.02 US dollars/ounce, an increase of 0.04%.