FED Jerome Powell Puts Gold on Fire – What’s Going On?
Arslan Butt • 1 min read
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.
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.