Gold prices are set to print a sixth consecutive weekly gain. The next area of resistance to watch out for falls at $1486.
The futures markets have been aggressively pricing in rate cuts but the Fed has only signaled for 30 basis points in cuts next year… so far.
The Fed meeting on Wednesday provided the catalyst gold needed to make a significant break that sees the yellow metal trading at levels not seen in around half a decade.
The highly anticipated Federal Reserve meeting resulted in forward guidance for a rate cut, however, not as the markets were expecting.
Gold has had rallies capped by upside resistance at $1350 over the past 24 hours but at the same time is holding the downside. Today’s Fed meeting will be an important one and the yellow metals should take its direction from it.
The price of gold trickled lower in early European trading on Monday. A support confluence is currently being tested and stands to trigger a bounce.
Quick Stats on Gold Positioning The net long position among speculators rose 28.1K contracts to…
Gold traded at a 14-month high in the past week and threatened a breakout that could have had significant long term bullish implications. However, the yellow metal retreated in the late week to give back the entire weeks gain.