Today is FED Meet. This time, the pressure will be huge as the authorities have decided to keep the rate of interest unchanged. Therefore, keeping inflation as the primary agenda, the FED Meet 2022 will not increase the interest rate this time.
US inflation has been the center of discussion since some earlier years for the constant hike in the prices of essential commodities. Moreover, the commodity trade also experienced a sharp decline in performance due to the inflationary situation. The FOMC Meet showed concerns about the current inflation rate being 8%. This implies that America will witness around a 75 bps hike in the prices of different commodities. The service sector is also likely to experience a change in their businesses amidst such a crucial condition. The present situation in the United States will undoubtedly impact the world market.Â
The commodity market is one of the popular segments for online trading. Hence, the price hike of the commodities will certainly impact the trader and the rate of returns from the trades. However, the trader needs to be aware of the current interest rates and go for smart strategies.
Peter Cardillo, the Chief Market Analyst, has raised concerns regarding the upcoming Fed Meet 2022 and the subject matter. The CPI Trend is showing an alarming rate of inflation for the US. Furthermore, the analysis of trade in commodities and inflation impacts indicate a high rise in the global market, touching multiple sectors. According to the financial expert, the September graph is going to touch 75 basis points. The month of June also showed such a trend in the market. So, the FOMC Meet will be very important for the common people, traders, and businesspersons.Â
The meeting is going to touch on the important point of inflation creating an alarming situation for various businesses based in the US. But this time, you can expect a no-hike in the overall interest rates. The authorities have already taken the decision, keeping in view the tough times the country is going through. The market, especially commodity trading in America, determines the positions of the global economy. Hence, it is essential to take the matter seriously and put a check on the rising prices. The primary reason for holding the FED Meet this year is to take enough measures to deal with the inflationary situation effectively.
2022 is likely to be an experimental year for America and the world. After the pandemic of two years, this time, businesses have started running like old times. But US inflation results from the continuous shortcomings in the market due to the closure and temporary shut-down of many entities. Commodity trading also suffered from a loss due to the volatile prices of the items involved in the trade. Amidst the estimated price rise of 8%, America will observe one of the most critical meets in 2022 in the form of the FOMC Meet. People can expect a favorable decision from the committee members concerning the present financial crisis and inflation.Â
Detailed Technical Analysis on Gold
Comex Gold futures has support at $1635—$1620 and resistance at $1690—$1730.
Gold is trading in a falling channel line from last few months and we expect that this channel line will break the upper band but not soon.
Decisive close below $1620 will take it to $1560—$1525. Here we recommend our subscribers to go short around $1680—$1690 with stop loss above $1730 for the downside target of $1635—$1620.
Detailed Technical Analysis on Silver
Silver is trading in a very tight range from last few months. Silver looks good as compare to Gold but here we expect range bound trading session remain continue for next few weeks.
Sell around $20.50 with stop loss above $21.20. Downside target looks $18.80 again.