Gold has been in consolidating within the familiar sideways
XAUUSD Technical Overview:
Pivot: 1196.20
Key Resistance: 1200.55 - 1204.25 - 1207.89 - 1212.66
Key Support: 1196.20 - 1193.55 - 1191.89 - 1188.29
Day Trading Range: 1205 - 1188
Technical Indicator:
RSI: RSI indicates upside bias with 52 level.
Moving Average: SMA 55(1200.54) , SMA 100(1202.22) & SMA 200(1201.43) these all are major resistance for Gold today.
Overall, With respect to the Fed fund futures yields, these continued to price 100% chance of a hike this week while the chance of another hike in Dec is priced at 90%. Much will now depend on the Fed's dots and median forecast, but anything uber-dovish could well see a huge unwind in the greenback and gold at these levels will all of a sudden look like good value and it may even take up market's preference for its safe-haven status again which would put it on course for a sizeable reversal. On the other hand, should the FOMC event be taken as more hawkish than expected, the dollar is likely to take back its title on the board of FX and weigh heavily on gold leading to a potential breakout of this extended period of consolidation.
Gold has been range bound since mid-August and is likely to remain in this state of flux as long as the Fed doesn’t do something widely unexpected on Wednesday.
The U.S. Federal Reserve is widely expected to raise its benchmark interest rate 25 basis points on Wednesday. This event has already been priced into the market. Gold is not likely to move on this news, but traders could react to any news on the path of future rate hikes.
For example, a dovish Fed monetary policy statement could put upside pressure on gold, while threatening to trigger a breakout above the key resistance level at $1220.70. The Fed cutting back on the number of rate hikes in 2019 or removing the word “accommodating” from its policy statement would be supportive.
Gold could break further if the Fed continues to press for more rate hikes in 2019 in order to gain control of rising inflation, or if it leaves the word “accommodating” in its monetary policy statement.
Additionally, gold could fall further if escalating trade tensions between the United States and China drives investors into the safe-haven U.S. Dollar.
Today’s Home Price Index (HPI) is expected to show an increase of 0.2%. The S&P/CS Composite-20 HPI is expected to come in at 6.2%. The Conference Board’s Consumer Confidence report is expected to come in at 132.2, slightly below the previously reported 133.4. The Richmond Manufacturing Index is forecast at 22, down from 24.
Thanks
YoCryptoManic
Pivot: 1196.20
Key Resistance: 1200.55 - 1204.25 - 1207.89 - 1212.66
Key Support: 1196.20 - 1193.55 - 1191.89 - 1188.29
Day Trading Range: 1205 - 1188
Technical Indicator:
RSI: RSI indicates upside bias with 52 level.
Moving Average: SMA 55(1200.54) , SMA 100(1202.22) & SMA 200(1201.43) these all are major resistance for Gold today.
Overall, With respect to the Fed fund futures yields, these continued to price 100% chance of a hike this week while the chance of another hike in Dec is priced at 90%. Much will now depend on the Fed's dots and median forecast, but anything uber-dovish could well see a huge unwind in the greenback and gold at these levels will all of a sudden look like good value and it may even take up market's preference for its safe-haven status again which would put it on course for a sizeable reversal. On the other hand, should the FOMC event be taken as more hawkish than expected, the dollar is likely to take back its title on the board of FX and weigh heavily on gold leading to a potential breakout of this extended period of consolidation.
Gold has been range bound since mid-August and is likely to remain in this state of flux as long as the Fed doesn’t do something widely unexpected on Wednesday.
The U.S. Federal Reserve is widely expected to raise its benchmark interest rate 25 basis points on Wednesday. This event has already been priced into the market. Gold is not likely to move on this news, but traders could react to any news on the path of future rate hikes.
For example, a dovish Fed monetary policy statement could put upside pressure on gold, while threatening to trigger a breakout above the key resistance level at $1220.70. The Fed cutting back on the number of rate hikes in 2019 or removing the word “accommodating” from its policy statement would be supportive.
Gold could break further if the Fed continues to press for more rate hikes in 2019 in order to gain control of rising inflation, or if it leaves the word “accommodating” in its monetary policy statement.
Additionally, gold could fall further if escalating trade tensions between the United States and China drives investors into the safe-haven U.S. Dollar.
Today’s Home Price Index (HPI) is expected to show an increase of 0.2%. The S&P/CS Composite-20 HPI is expected to come in at 6.2%. The Conference Board’s Consumer Confidence report is expected to come in at 132.2, slightly below the previously reported 133.4. The Richmond Manufacturing Index is forecast at 22, down from 24.
Thanks
YoCryptoManic