GCAP GoldPrivate▲ Positive
Monetaryrelevance
GCAP Gold's own analysis highlights Fed balance sheet reduction as supportive for gold recovery.
GCAP GOLD assesses that the US central bank may shift its monetary policy approach by turning to reduce the size of its balance sheet instead of raising interest rates, which could pressure the dollar and open an opportunity for gold prices to stage a new recovery. Head of analyst Ms. Areerat Murachai stated that such a signal emerged after Mr. Kevin Warsh testified before the US Congress, mentioning a review of the Fed's balance sheet which currently stands at around 6.8 trillion dollars. The GCAP GOLD research team views that technical signals are starting to recover, although an uptrend is not yet confirmed. However, if the price holds firmly above $4,100, there is a chance to test the key resistance at $4,200, or approximately 66,700 baht for Thai gold prices, while recommending a strategy of gradually accumulating on dips, with support at $4,065 to $4,000, or roughly 65,200 to 64,500 baht for Thai gold prices.
GCAP Gold's own analysis highlights Fed balance sheet reduction as supportive for gold recovery.