XAUUSD-Sudden reversal of "galloping" increase
World gold prices increased sharply with spot gold increasing by 44.4 USD to 2,023.9 USD/ounce. Gold futures last traded at 2,039.6 USD/ounce, up 46.4 USD compared to yesterday morning.
World gold increased "gallopingly" after the final monetary policy meeting in 2023 of the US Federal Reserve (Fed). Gold price was pushed past the threshold of 2,000 USD/ounce after the Fed decided to keep interest rates unchanged from 5.25% - 5.5% and emphasized that economic growth is slowing down and inflation is showing signs of "cooling down". ”.
Most Fed officials see rate cuts coming in 2024, 2025 and 2026, with the funds rate forecast at 4.6% by the end of 2024, down from a forecast of 5.1%. % in September; 3.6% in 2025, down from the previous forecast of 3.9%. The market evaluated the Fed's latest statement as surprisingly dovish given its previous "hawkish" monetary policy. Reacting to the Fed's statement, gold jumped another 1%.
According to the CME Fedwatch tool, after the Fed's statement, traders are now pricing in a nearly 60% chance that the US will cut interest rates in March 2024.
“The Fed's acknowledgment of continued subdued inflationary pressures has increased expectations for rate cuts, sending yields and the dollar sharply lower, but has spurred push gold prices up. Ridge believes that gold's current upward trend will be a sustainable price increase.
Forexlive.com chief currency strategist Adam Button noted that the Fed has moved closer to market expectations and this suggests the market is moving in the right direction.
After the Fed meeting, markets will turn to the European Central Bank and Bank of England policy meetings that will take place on Monday. These meetings are expected to have an impact on the trajectory of the market. Yellow.
SELL 2040
tp 2000
sl 2055
World gold increased "gallopingly" after the final monetary policy meeting in 2023 of the US Federal Reserve (Fed). Gold price was pushed past the threshold of 2,000 USD/ounce after the Fed decided to keep interest rates unchanged from 5.25% - 5.5% and emphasized that economic growth is slowing down and inflation is showing signs of "cooling down". ”.
Most Fed officials see rate cuts coming in 2024, 2025 and 2026, with the funds rate forecast at 4.6% by the end of 2024, down from a forecast of 5.1%. % in September; 3.6% in 2025, down from the previous forecast of 3.9%. The market evaluated the Fed's latest statement as surprisingly dovish given its previous "hawkish" monetary policy. Reacting to the Fed's statement, gold jumped another 1%.
According to the CME Fedwatch tool, after the Fed's statement, traders are now pricing in a nearly 60% chance that the US will cut interest rates in March 2024.
“The Fed's acknowledgment of continued subdued inflationary pressures has increased expectations for rate cuts, sending yields and the dollar sharply lower, but has spurred push gold prices up. Ridge believes that gold's current upward trend will be a sustainable price increase.
Forexlive.com chief currency strategist Adam Button noted that the Fed has moved closer to market expectations and this suggests the market is moving in the right direction.
After the Fed meeting, markets will turn to the European Central Bank and Bank of England policy meetings that will take place on Monday. These meetings are expected to have an impact on the trajectory of the market. Yellow.
SELL 2040
tp 2000
sl 2055
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