Gold Price Prediction – Prices Rise as the Dollar Drops Following Fed DecisionThe Fed kept rates unchanged
Gold prices rebounded from session lows and close up on the session as the dollar dropped in the wake of the Fed decision. U.S. Treasury yields eased after rallying on Tuesday. The Fed is expected to keep interest rates on hold for the foreseeable future, despite higher inflation expectations and stronger growth.
Trade gold with FXTM
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.
Gold prices rebounded on Wednesday, bouncing off the lows and closing above support. The upward trend remains in place with resistance seen near the Fibonacci retracement level of 38.2%, which is seen near 1,828. Target resistance on the yellow metal is seen near the February highs at 1,855. Support is seen near the 10-day moving average at 1,778. The 10-day moving average has crossed above the 50-day moving average which means that a short-term uptrend is now in place. Short-term momentum is negative but consolidating as the fast stochastic started to consolidate. The current reading on the fast stochastic is 76. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. The MACD histogram is printing in positive territory with a declining trajectory which points to consolidation.
The Fed Keep Rates Unchanged
The Federal Reserve kept interest rates unchanged but acknowledged that the U.S. economy is accelerating. The U.S. central bank decided to keep short-term interest rates anchored near zero as it buys at least $120 billion of bonds each month. Despite noting the economic strength as well as inflation that is on the rise, the policymaking Federal Open Market Committee unanimously decided to make no changes in its approach. Powell said that it’s still not time to talk about reducing policy accommodation, including the asset purchases.