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.
Only from November 02nd, 2020, to January 04th, 2021, Deposit Bonus 200% is available for all FortFS clients! Use the advantage to engage for the unique offer within a limited period: activate the deposit bonus and get up to 200% on the deposit amount on your trading account! How to get a Deposit Bonus of […]
Only from 23 to 25 of November, the largest no deposit bonus 100 USD is available for all Forex traders! 🏆 Bonus details: 100 USD maximum withdrawal 75 lots of required trading turnover 2 weeks to try all of the trading conditions Available for cent accounts 📍 How to get the bonus: 1) Register an […]