Gold markets have initially pulled back during the trading session on Tuesday but have bounced a bit as we await the FOMC Statement. The interest-rate decision will of course be front and center, and perhaps even more importantly they will take a look at the overall tone of the statement. If the market continues to see the Federal Reserve as being very loose and dovish, it’s likely that we will continue to see demand for precious metals, with gold of course be in the first place people look. Overall, this is a market that looks bullish, although it’s been flat recently. The flat pricing of course could be simple digestion of the overall uptrend as we had rallied so drastically.
Price of Gold Video 30.10.19
Ultimately, the market will get an impulsive candlestick after the Wednesday session under most circumstances, and at this point it’s likely that the market should continue in whatever direction it shows. Ultimately, this is a market that is more likely than not to go higher, not only because of the interest rate cuts, but the possibility of geopolitical concerns around the world. There are a lot of recessionary concerns also, so quite frankly I do lean to the outside, but I recognize that the next 24 hours could change everything based upon market perception. With that in mind, waiting for a daily close on Wednesday it makes quite a bit of sense that the market will have some follow-through.
Please let us know what you think in the comments below