{"id":102245,"date":"2017-02-17T07:18:40","date_gmt":"2017-02-17T12:18:40","guid":{"rendered":"http:\/\/countingpips.com\/?p=102245"},"modified":"2017-02-17T07:18:40","modified_gmt":"2017-02-17T12:18:40","slug":"xauusd-technical-analysis-uncertainty-about-the-eu-future-supports-gold-prices","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/02\/xauusd-technical-analysis-uncertainty-about-the-eu-future-supports-gold-prices\/","title":{"rendered":"XAUUSD: Technical Analysis – Uncertainty about the EU future supports gold prices"},"content":{"rendered":"
February 17, 2017<\/div>
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By IFCMarkets<\/a><\/p>\n

Uncertainty about the EU future supports gold prices<\/strong><\/p>\n

Sustained inflation above Fed\u2019s target threshold 2% and low unemployment increase the likelihood of a rate hike sooner rather than later this year. This will strengthen the US dollar and pressure gold. Will gold<\/a> continue rising?<\/p>\n

Gold prices are rising after hitting almost two year lows in mid-December. The increased political uncertainty about the future of euro-zone ahead of French presidential elections is the main bullish factor supporting gold prices in short term perspective. The National Front leader Marine Le Pen has vowed to hold a referendum on European Union membership in six months time if she is voted in. A major bearish factor for gold is the anticipation of Fed\u2019s monetary policy tightening. At its testimony before US Senate and Congress committees this week Fed chair Janet Yellen confirmed the central bank plans three rate hikes this year and will raise rates at coming policy meetings as it would be \u2019unwise to wait too long to tighten\u2019 mentioning signs of inflation and wage growth. This left the door open for a March rate hike though investors deem the likelihood of a March hike not high as Fed officials have said they\u2019d like to see the recent uptick in inflation be sustained before they raise interest rates. On Wednesday data showed the Consumer Price Index rose 0.6% in the month, the largest amount in four years, with headline inflation above Fed\u2019s target of 2%.<\/p>\n

\"XAUUSD\"<\/p>\n

The XAUUSD: D1 <\/b> has breached above the 200-day moving average MA(200) on the daily chart.<\/p>\n