FXEMPIRE
All
Ad
Advertisement
Advertisement
David Becker
Add to Bookmarks
Gold up Ahead the Fed, Trump Blames Europe for Doing What He Wants To Do in US
Gold up Ahead the Fed, Trump Blames Europe for Doing What He Wants To Do in US

Gold prices broke out as US yields slipped lower following the Fed’s decision to keep rates unchanged, and a downward revisions to future rates. The Fed’s average dot plot, which is graph of future interest rate levels, dropped significantly, as Fed governors readjusted their thinking. The new projections now show 1-fed officials seeing at leave 25-basis points by the end of the year and 7, that see rates lower by 50-basis points. Eight fed governors see rates unchanged through the balance of the year. The decision allowed the dollar to ease paving the way for lower gold prices.

Advertisement
Know where Gold is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Technical Analysis

Gold prices broke out hitting fresh 18-months highs and closing near 1,359. Support is seen near the former break out level at 1,346. Resistance is seen near the 1,370-1,375 region and then 1,392, and up to 1,423. Short term momentum has turned positive as the fast stochastic generated a crossover buy signal. The current reading on the fast stochastic is 86, above the overbought trigger level of 80, which could foreshadow a correction. The RSI (relative strength index) which is a momentum oscillator also broke out which reflects accelerating positive momentum. The current reading on the RSI is 75, above the overbought trigger level of 70, which could foreshadow a correction. The MACD histogram is printing in the black with an upward sloping trajectory which points to higher prices.

Advertisement

The Fed Leaves Rates Unchanged

The Fed left rates unchanged as expected. What was unexpected was that eight FOMC members now see rate cuts this year as appropriate versus none in March.  That number rises to nine in 2020.  The end-2019 median Fed Funds remains at 2.375%, but the end-2020 median dropped to 2.125% down 50-basis points from March.  The Fed tweaked its economic forecasts raising GDP slightly to 2.1% and then declining to 2%, which is higher than the 1.9% increase they say in March.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker