Gold up Ahead the Fed, Trump Blames Europe for Doing What He Wants To Do in US

Gold is trading up as well as other metals just ahead of the Federal Reserve 2-day meeting. Trump tweeted again.
Mauricio Carrillo
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 is trading positive on Tuesday as investors are expecting a rate cut by the Fed on Wednesday. Also, they are digesting Trump last tweet blaming ECB Draghi’s stance on Euro.

The investing market is watching the FOMC 2-day meeting closely as the primary catalyst for movements. Equities are trading higher, dollar is up on the day, and the yellow metal is also posting gains.

The dollar index is extending gains for the fifth day in a row, but benefits are now limited as investors are focused on the FOMC 2-day meeting that starts today. Experts are waiting for hints to a rate cut.

A rate cut is on the table; so, speculations of a weak dollar is sending metals up.

Metals report for June 18, 2019

XAUUSD daily chart June 18

Gold is trading positive on Tuesday as the unit is extending its recovery from the 1,333 low reached on Monday. It is now pricing at 1,350, just ahead of its 2-month highs at 1,358 traded yesterday.

Silver is advancing on Tuesday after two negative sessions that drove the unit from 15.12 on June 14 to trade at 14.78 on Monday. The unit is now consolidating gains above the 200-day moving average at 14.90 and testing the 15.00 area.

Copper broke the 20-day moving average on Tuesday to perform its second day of gains in a row. The unit is extending recovery from Friday’s lows at 2.6110 to trade at current intraday highs at 2.6712.

After three days testing it, Palladium finally broke the 1,467 level on Tuesday with the unit jumping near to 2% to price as high as 1,490. Besides, the 20-day moving average has crossed above the 50-day MA with the 200 days moving average acting as long term support, giving a long term signal for more gains.

Palladium is now facing the 1,500 area as the next resistance, then, 1,570. Above there, all-time highs at 1,615 will be exposed. So, expect more to come.

Platinum found support at the 790.00 area on Tuesday, and the pair took it as the place to build a new leg for recovery, at least in the short term. The unit is now testing the 20-day moving average at 805.00. However, technical studies don’t give many hopes for an upside movement. Time will say.

is the rate cut imminent?

Everybody in the market is watching the FOMC meeting this week as they are using interest rates as a catalyst for the next movement. Investors are waiting to see how the Fed will be positioning this time and how dovish that stance will be.

The market is also looking for hints about rate cuts soon, and a cut on Wednesday is not out of the table.

In this framework, gold investors are taking positions and provide steam to the metal to gain ground on Tuesday.

Trump blames Europe

Another day, another tweet in Trump country. This time, the US president blamed Mario Draghi for doing what he wants to do in the United States: stimulus and downplaying the Euro.

As the tweet says, “Mario Draghi just announced more stimulus could come, which immediately dropped the Euro against the Dollar, making it unfairly easier for them to compete against the USA.”

Trump also put the European Union at the same level as China in terms of trade and currency war. “They have been getting away with this for years, along with China and others,” Trump says.

Interestingly, Trump tweeted that message today Tuesday, the day that the Federal is starting its 2-day meeting, as it could be taken as an attempt of pressure to force the Fed to move towards a rate cut.

Anyway, the tweet helped gold to make more gains versus the dollar. However, the Fed has the last word.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.