FED Jerome Powell Puts Gold on Fire – What’s Going On?

Gold experienced massive buying at the cost of a weaker dollar. Well, what's done is done. Now, the investor's focus switches to FOMC...


GOLD dramatically jumped nearly 140 pips to trade at $1,225 after the Fed’s Chairman Jerome Powell turned his tone to dovish. He said, the interest rates are “just below” the level where they won’t stimulate the economy (neutral level), crushing bets of an extended policy tightening period.

In response, we gold experienced massive buying at the cost of a weaker dollar. Well, what’s done is done.

Now, the investor focus switches to FOMC minutes. They are likely to keep a close watch on the Fed’s minutes which are due at November 7-8 meeting.

What’s Next?
Well, we just opened a buying trade in gold above $1,225 with a stop below $1,222 and take profit at $1,228. It’s because of the fact that gold has managed to violate the double top pattern at $1,223 and that opens further room for buying until $1,228 resistance.

Good luck!

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

Related Articles

Comments

0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Doo Prime

XM

Best Forex Brokers