Yesterday's GBP bank holiday coupled with a lack of economic activity during the New York session resulted in gold consolidating within a 200 pip range following the London session. Despite this, FOMC member speeches, notably from Fed’s Barkin, maintained a hawkish tone. Barkin expressed disappointment with inflation data this year but remained optimistic about the Fed's ability to manage demand and bring inflation back to target levels.
In Barkin's view, recent fluctuations in economic data raise questions about the underlying economic outlook. However, he remains confident that the current level of interest rates can temper demand and eventually stabilize inflation. Emphasizing the importance of data-driven policy decisions, Barkin stressed the need for greater confidence in inflation's movement toward the Fed's 2 percent target.
Looking ahead, today's trading strategy focuses on buying opportunities above the 2330 level and selling below the 2317-2308 range. Traders are advised to exercise patience, avoid forcing trades, and adhere to their predefined trade plans amidst market fluctuations.