On Thursday, gold prices demonstrated a slight correctional decline, after a fairly strong recent increase. The instrument responded positively to the FOMC meeting results and the weakening of USD across the entire spectrum of the market.
The regulator expectedly kept interest rates unchanged, but signaled that monetary policy could remain unchanged throughout 2020. In his final speech, Jerome Powell noted that he would personally oppose raising rates until he saw a steady increase in inflation in the country. This is a positive long-term signal for gold, since low interest rates in the US will limit the ability to strengthen the dollar and increase government bond yields.
Another support factor for the precious metal remains the uncertainty regarding possible introduction of US trade duties against Chinese imports on the 15th of December. According to Reuters, the final decision on this issue will be made today during a White House meeting.
In addition to political news, investors should follow the ECB meeting results.
Regarding the chart, there was an upward breakdown in the consolidation area of 1460.00-1467.00. This is a bullish signal within which we can expect further growth of towards the level of 1480.00.
Resistance Levels: 1480.00, 1490.00, 1505.00;
Support Levels: 1467.50, 1460.00, 1455.00.
The main scenario - a correction towards the level of 1.6750 and further increase towards the level of 1480.00.
An alternative scenario - an increase towards the level of 1480.00 from the current levels.
The fundamental outlook is moderately positive. Within the daily framework, we consider purchases from the level of 1467.50.
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