Fed's Hawkish Stance Pressures Commodity Prices: Gold and Oil Decline

Despite the DXY being in overbought territory above the RSI 70 level, the Fed's hawkish stance and declining commodity prices could support the dollar index in the short term. The MACD is hovering near the signal line but remains in positive territory, suggesting that upward momentum may continue. Trading above the 20- and 50-day moving averages also confirms the uptrend. However, due to the overbought zone and potential profit-taking, I believe the upside movement may be limited.

The news headline indicates that the Fed's hawkish stance is weighing on commodity prices, with gold retreating. This serves as a short-term negative catalyst for GLD. Technical indicators also support this view: the RSI at 38.24 is approaching oversold territory but remains in a downtrend. The MACD is below the signal line and in negative territory, signaling weak momentum. Although the price is well above the SMA20 and SMA50, the latest close at 4285.64 suggests potential for divergence from these averages. In the short term, the downtrend is likely to continue, though some recovery may be expected due to the oversold condition.

Brent crude continues its downward trend, influenced by the Federal Reserve's hawkish stance. Technical indicators support this view: although the RSI at 37.6 is approaching oversold territory, the MACD remains below the signal line and in negative territory. The price is trading below both the 20-day and 50-day moving averages. Selling pressure is likely to persist in the short term, though the pace of decline may be limited due to oversold conditions.