Date: 03 May 2019
After last Wednesday’s neutral decision by the U.S. Federal Reserve, investors were not happy on Thursday. Many had expected the head of the Federal Reserve to give indications of an imminent rate cut at this meeting. Instead, the Fed wants to continue to be patient in its monetary policy, so it seems the key interest rate will remain unchanged for the time being.
Powell, Chairman of the Federal Reserve, continues to see the economy as well positioned. The labour market and economic growth even exceeded the Fed’s expectations. The head of the central bank also made positive comments on the European and Chinese markets. There are signs of recovery, he said.
However, traders remained cautious. The S&P500 even dropped below the 2900 level on yesterday’s trading session. Gold also remained subdued on yesterday’s trading session. Gold was trading below the critical US$1,275 level.
For gold to make further progress, the bulls must drive the price significantly through the US$1,275 area. Then, in the regions at US$1,302 and US$1,325, there could be further resistance on the way up.
However, if the bears prevail and the gold price falls, there could be support for the market in the US$1,253 and US$1,231 areas.
The MACD oscillator is telling us nothing; the histogram has migrated to its zero lines, the MACD line and its trigger line is almost parallel. If the MACD histogram crosses the zero line or the MACD line cutting with its trigger line from bottom to top, that would be a bullish sign.
Gold Daily Chart | Source: ActivTrader
Written by Daniel Schuetz, External Analyst
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