[Price to be UNLOCKED] The Fed Holds the Key

Why is it entirely plausible for the Fed to pause rate hikes for a longer period of time? Find out inside. Picks from the Editor SPONSORED (Newsletter Continues Below) One Price Pattern has Dominated Every Market Phase   Would you believe that a single price pattern that anyone can find on a chart has maintained an 80% historical win rate through every type of market condition? Learn how to spot this pattern in a free trading workshop.  [ It Could Change Your Financial Future!]( By clicking the link above you agree to periodic updates from WealthPress and its partners ([privacy policy]( Could the Fed Be the Key to Unlocking Gold’s Potential?  Hi Traders,  Ahh, the stock market, you know, that place where dreams are made and crushed, sometimes all in the same day. It started off like one of those Mondays where even coffee doesn't help. Here's the scoop: most market averages started off negatively stacked, like a poorly built Jenga tower. We had the 50 in blue hiding underneath the 200 in green. It's like the market was under a rain cloud, even though the price moving averages were all sunshine and roses. When you see this divergence, you better buckle up because things are about to get bumpy. The previous session was as bearish as a grizzly with a thorn in its paw. Regional banks were tripping over new year-to-date lows, and the crude oil ETF, USO, had its biggest down day since July 2022. This ignited fears of an economic slowdown, as if we needed another thing to worry about. To add fuel to the fire, the Fed is deciding on interest rates later today. This had traders scurrying to safety like cockroaches when you switch on the kitchen light. The market mood was so sour, even lemons looked sweet. Especially when it came to the regional banking system, as shown by the unfortunate performance of the S&P Regional Banking ETF (NYSE:KRE) and the Financial Select Sector Fund (NYSE:XLF). Now let's turn our attention to gold, the diva of the asset world. It loves to take center stage when markets start doubting the monetary system. Yesterday, gold spiked back above 2,000 during Tuesday’s early US trading hours, like a phoenix rising from the ashes. Right now, gold bulls are stuck in a tug of war with key trendlines, bouncing between the 2,020-2,025 zone. Even though the RSI and MACD have put on their green jerseys, the precious metal needs to leapfrog over that border to reach the 2,050 resistance zone, the next pitstop on its journey to the 2,100 psychological level. But, like a double rainbow, there's a bit of optimism in the horizon. The 20-period SMA is about to post a double bullish cross with the 50- and 200-period SMAs. This could be the signal we need for a positive trend continuation. However, if gold can't stick the landing above 2,025, we might see a reversal. It might start seeking support within the 1,992-1,985 zone, like a mountaineer looking for a good foothold. If the bears manage to breach that base, we might be in for a harsh descent towards the 1,950 area, and even lower consolidation around 1,935. In short, gold's recent sprint seems to have hit a bit of a speed bump near a key resistance zone. Buyers may decide to take a chill pill until the yellow metal closes above 2,025. Looking ahead, it's likely the Fed will raise rates again, which is as surprising as finding out water is wet. But if Chairman Powell's comments lead to a further loss of confidence in the Fed's ability to steer the ship amidst the stormy seas of a worsening banking crisis, economy, and inflation risks risks, then gold might just get its time in the limelight. Imagine this - the Fed's decision and subsequent remarks are like the opening act of a rock concert, setting the stage for the main event. If the opening act flops, the crowd's expectation for the main act magnifies. Similarly, if Powell's words add to the market's jitters, gold might just be ready to rock and roll. After all, nothing shines brighter in uncertainty than a precious metal known for its stability. Let's face it, Powell's job is tougher than juggling flaming swords while riding a unicycle. He has to balance a worsening banking crisis, the economy, and inflation risks. It's like trying to keep three cats in a bag. If he slips up, confidence could take a hit, and that's where gold could step in. Gold is like that reliable friend who shows up when things go south. So, if the Fed's decision adds more uncertainty, don't be surprised if gold becomes everyone's best friend overnight. It may just be ready to take off, like a rocket headed for the moon. The market might look like it's all doom and gloom right now, but remember, every cloud has a silver, or should I say, a gold lining.  Cheers, and may the odds be ever in your favor!  John @ Traders on Trend  (In the next article: Everyone expects the Fed to raise rates later, but for how long? Find out below! 👇) Sponsored [The End of the Dollar]( Take a good look at this building. This is the command center for one of the most devastating plots in American history. A plot that could make the money in your wallet worthless ... and “give federal officials FULL CONTROL over the money going into, and coming out of, every person’s account.” And that’s just the tip of the iceberg.[Go here to get all the details.]( [Privacy Policy/Disclosures]( Check the Free Presentation Today ☝ SPONSORED Extended Pause Possible for Federal Reserve After Rate Hike Picture this: it's like we're at a high-stakes poker game and the Federal Reserve is holding all the cards. The way they play their hand could make or break the game, and we're all eagerly waiting for their next move. Rick Rieder from BlackRock, a big player himself in this global financial poker game, thinks the Fed will likely up the ante by raising the benchmark interest rate by 25 basis points, landing us in a 5% to 5.25% range. Now, that might sound like a bold move, but he reckons the Fed might then take a bit of a breather, just letting the prior hikes do their thing. Can you imagine? It's like letting a good steak marinate, absorbing all the flavors. But wait, there's more! Rieder's going to be watching the Fed’s policy statement like a hawk. And no, not because he's got nothing better to do on a Wednesday at 2 p.m. Eastern time, but because the wording surrounding credit conditions and their impact on the economy might be changing after recent bank failures. Yeah, you heard it right, 'bank failures'. That's scarier than a horror movie on Friday the 13th. And the Fed's previous statement on March 22 was a bit of a cliffhanger, hinting at tighter credit conditions and a weighing on economic activity, hiring, and inflation. Now, Rieder is a bit of a Nostradamus when it comes to predicting the financial future. He believes we're about to see a tangible credit contraction, following the downfall of some banks in March and April. He reckons regional banks are going to pull back on lending and higher interest rates will put the brakes on the economy and bring down inflation. Rieder also thinks the Fed might hint that we're nearing the end of the rate-hiking cycle.  (article continues below) Sponsored [How He Bagged One Of The Top Trading Records…]( A reclusive millionaire has been quietly racking up winning trade after winning trade. Despite avoiding most headlines, he’s become one of the most successful traders around - over the last 8 years, he’s banked a 97% win rate. How does he do it? He sat down for a rare interview where he revealed it all. [Click HERE to see how he’s done it…]( [Privacy Policy/Disclosures]( SPONSORED  🔼 Pay attention, this is worth your time! ☝  (article continues)  But don't expect them to let up on talking tough on inflation. It's like a parent who knows they're being too strict but still lectures their kids on the importance of discipline. The Fed's been acting like a strict parent, raising rates rapidly over the past year to control inflation. But just like parenting, the results can be a bit unpredictable. Sometimes the impact is slow, but other times it can be "really quick". Just look at the recent regional-bank turmoil. Rieder's crystal ball also shows a possibility of the U.S. dipping into a shallow recession. But hey, it's not all doom and gloom. He predicts the first half of 2023 to be pretty good, before a tangible slowdown later in the year. He also anticipates the Fed might start cutting rates in 2024, with December being a possibility. But if banking stress becomes more significant, they might have to cut rates earlier. The chances of that happening, though, are as low as finding a unicorn in your backyard. Markets are reacting, probably the way I would if I saw a spider in my house, to concerns that small and midsized banks may reduce lending after the Fed’s aggressive rate hikes. Meanwhile, the fast-approaching deadline for the U.S. government to raise its borrowing limit probably won't influence the Fed’s rate decision, according to Rieder. If Congress fails to raise the borrowing limit, the U.S. could breach its debt ceiling as soon as June 1. Imagine that! It's like running out of credit on your card when you're out for dinner. You don't want to be washing dishes, do you Now, while the debt-ceiling debate and the risk of defaulting might sound like a ticking time bomb, Rieder believes it's more like a reality TV show for the Fed officials. They're probably binge-watching every development, but it's still "business as usual" from a policy perspective. Picture this: the Fed officials are like popcorn-munching spectators, watching the drama unfold, but not letting it influence their game plan. At least, not until the final buzzer. The recent update from Treasury Secretary Janet Yellen about the debt-ceiling deadline was a bit of a plot twist. I mean, who expected a potential default before the summer heat kicks in? But Rieder thinks this plot twist will keep us on the edge of our seats, predicting that the debt-ceiling will be the main source of market volatility in the coming weeks. But don't worry, he also expects a short-term extension of the deadline. So, it's like watching a thriller movie and guessing the ending. As the debt-ceiling debate drags on, and the discussions get more intense, Rieder expects the equity, credit, and currency markets to be on edge. It's like the suspense before the season finale of your favorite TV show. You know something big is about to happen, but you're not quite sure what. To cap it all off, Tuesday ended with the U.S. stock market taking a bit of a tumble, with the Dow Jones Industrial Average falling 1.1%, the S&P 500 dropping 1.2%, and the Nasdaq Composite shedding 1.1%. But remember, there's always another game, or in this case, another trading day. It's all a big financial drama with the Federal Reserve, the debt ceiling, and the banking woes. And we're all waiting to see how the next episode unfolds. So grab your popcorn and buckle up because it's going to be a wild ride!   Disclaimer:  The material in this document is for informational purposes based on our proprietary research. It is not an offering, specific recommendation, or a solicitation of an offer to buy or sell any securities mentioned or discussed herein.  Any performance results discussed herein represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment.  Due to the timing of information presented, any investment performance reflected within this document may be adjusted after the publication and distribution of this material. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, be equal to any corresponding indicated historical performance levels or be suitable for your portfolio.  Any investment results set forth in this document are not net of expenses and execution costs, nor do they account for other relevant trading or investment fees. 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