Gold prices consolidate at weekly highs on dovish comments from Fed chair Jerome Powell. The Fed yesterday kept the interest rates unchanged as was widely expected by markets. Governor Jerome Powell noted that the US economic outlook remains strong despite global growth risks. He also said that as long as the financial data remains consistent with this outlook the monetary policy is likely to remain the same.
Traders await today the ECB policy decision and the outcome from the UK elections, while keeping an eye on the trade talks between USA and China as we approach the December 15th deadline on imposing new tariffs on Chinese products from the U.S. administration.
Gold prices gained over 15 dollars yesterday after Jerome Powell dovish comments and hit the daily high just shy of the 50-day moving average.
While gold breached yesterday and trades today above the 20-day moving average enhancing the positive momentum, the technical outlook is still negative for gold price as it has trapped inside the downward channel that drives the price since September.
The positive move in gold might meet resistance at $1,475.56 the daily high, while a break above would open the way for the next target at $1,478.86 the yesterday’s session high. Next strong hurdle stands at the 100-day moving average at $1,488 and needs a fundamental catalyst in order to breach that level.
On the downside gold immediate support stands at $1,472.65 today’s low while yesterday’s low will provide further support at $1,463. Bids will emerge at the low from November 12th at 1,445. Gold prices sellers need to clear the support at $1,445 to establish another leg lower.More content