Citi Reduces Gold Positions After Fed's Hawkish Tone

The news is not directly related to GOOGL; the Fed's hawkish tone and gold position reduction are macro headlines that could weaken overall risk appetite. GOOGL has risen 4% in 24 hours, RSI at 58 is not in overbought territory, and the price is above SMA20/SMA50, indicating a positive technical outlook. However, MACD is below the signal line, and a hawkish Fed could create short-term pressure on growth stocks. Therefore, for 1-3 days, the direction is uncertain; if current momentum is maintained, there is upside, but if macro pressure increases, there is limited downside risk.

Citi's reduction of gold positions may create short-term pressure on gold following the Fed's hawkish tone. However, GLD's last close at 4349.6 showed a 1.54% increase in 24 hours, and with an RSI of 41.7, it is near oversold territory, indicating that the decline may be limited. The MACD is in negative territory and below the signal line, but no crossover has occurred yet, supporting weak downward momentum. Trading well below the SMA20 and SMA50 indicates that the medium-term trend is still down. Although the news flow is negative, due to oversold conditions and the recent recovery, the decline is expected to be limited.

Citi's reduction of gold positions may create short-term selling pressure following the Fed's hawkish tone. However, the price has risen 6.6% in 24 hours and the RSI is at 52, in neutral territory, with no overbought condition. The MACD is below its signal line (0.16 < 0.25), indicating weak momentum. It is trading just above the SMA20 and SMA50, which could serve as support. The news impact may be limited, with slight downward pressure expected over 1-3 days.

Citi's reduction of gold positions is a reflection of the Fed's hawkish tone, serving as a mildly supportive signal for the dollar index. DXY is currently at 99.69, just above its 20- and 50-day moving averages, with an RSI of 58 in neutral-positive territory. Although the MACD is slightly below its signal line, the price holding above the moving averages increases the likelihood of an upward trend in the short term. However, the impact of the news may be limited, as reducing gold positions does not directly guarantee dollar demand. I expect a moderate upward move in the dollar index over the 1-3 day horizon, but volatility may remain low.