Booking Profit on Gold Longs Yet Again, As Powell Keeps Quiet on Policy and Inflation
We continue to open buy Gold signals as the pressure remains to the upside and closed 2 winning signals today as Powell sent the USD lower
Gold lost the safe haven status early in 2022, as financial markets reshuffled and it turned into a risk asset. With, the sentiment remaining mnegative until october, Gold remained bearish, although it held better than most other risk assets.
The sentiment turned positive in October as central banks and particularly the FED started giving less hawkish signals. Risk assets turned bullish while the USD turned bearish. As a result, Gold has been making some strong gains and it remains one of the strongest assets in the last two months. On Friday last week the USD decline resumed again after pausing for a couple of weeks and Gold is approaching $1,900 now, with the 50 SMA (yellow) acting as support during pullbacks lower on the daily chart.
Gold H1 Chart – Making A New High Today
The price jumped as the 50 SMA caught up
We have been buying GOLD and today we opened two more Gold signals above $,870 which was acting as support. Then the Gold price reversed higher and resumed the uptrend again as the 50 SMA (yellow) caught up, after Powell’s comments which are below:
Powell Commenting on Central Bank Independence
- We need to stick to our mandate
- We shouldn’t be getting ahead of where the public is without a specific mandate
- Restoring price stability when inflation is high can require measures not popular in the short term
- Fed should ‘not wander off to pursue perceived social benefits’ not tightly linked to mandate
- We are not and will not be a ‘climate policymaker’
- Fed has narrow responsibilities regarding climate-related financial risks
Powell’s final comments don’t touch on monetary policy. That takes away a big risk today. US equity futures ticked higher on the text release as there was some relief that he didn’t deliver anything hawkish, however in about 15 minutes a Q&A will begin and Powell will likely be quizzed then on the current outlook. He’s usually candid so there’s still a good chance that he touched on monetary policy.
Gold XAU Live Chart
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