Gold Markets Technical Analysis
Gold markets have pulled back slightly during the early hours on Tuesday as we continue to see a bit of noisy behavior, but we have also seen traders come back in and try to support this market. With that being said, we’ve got a market that remains buy on the dip, and I think we also have the same floor in it near the $2,530 level that previously had been its ceiling.
The Tuesday session could be somewhat noisy as we prepare for the Wednesday session, which of course features the FMOC interest rate decision and perhaps more importantly the press conference afterwards. This obviously has a major influence on gold as Federal Reserve interest rates have a major influence on the US dollar. At this point in time, people believe that the FOMC is going to cut rates, and I concur, I believe that they will cut 25 basis points. But the question will be, what will Jerome Powell say in the press conference?
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And that is probably the big mover for the next couple of days. We also have a central bank decision coming out of England and Japan, so that can have a knock-on effect. But ultimately, I think the big mover will be the FMOC and perhaps whether or not Jerome Powell suggests that the market is going to expect multiple cuts going forward. I remain buy on the dip unless of course he shocks the market and says there’s no cuts coming, which I just don’t see why that would happen.
Source: Fxempire
