XAU/USD:needs a dovish Fed to break above daily trendline
Gold attempted a break out above a key daily trendline last week. However, at the time of this posted about my skepticism about the break, which proved to be correct as price rejected the $1500 region with a bearish Pin Bar. So, the next driver for Gold today is to be the Fed and the rate statement tonight at 1900GMT. Here are my expectations for Gold:
If the Fed go for a bearish rate cut: Gold will rally
If the Fed go for a hawkish rate cut : Gold will remain pressured
Gold will also take its cue from global risk tone (generally positive recently). If that positive tone continues then Gold should have its upside limited. If global risk turns negative that will be supportive for Gold.
If the Fed go for a bearish rate cut: Gold will rally
If the Fed go for a hawkish rate cut : Gold will remain pressured
Gold will also take its cue from global risk tone (generally positive recently). If that positive tone continues then Gold should have its upside limited. If global risk turns negative that will be supportive for Gold.