Gold became silent after the news from the Fed
Hello dear friends, what do you think the next move for gold will be?
As per market expectations, the US Federal Reserve has decided to maintain interest rates at a range of 5.25% to 5.5% as an optimistic signal for the economy. The Fed raised interest rates significantly for most of last year, bringing them to around 5.25% to 5.5%, with the aim of bringing inflation to the target level of 2%.
Since reaching a peak of over 7% last year, inflation has decreased by more than half. However, it still remains above 3%. This could potentially lead the US economy into a recession this year due to the rapid pace of interest rate hikes. However, surprisingly, the largest economy in the world remains strong, with the Fed emphasizing that the US economy is still growing strongly in the third quarter, with low unemployment rates and a resilient banking system. This reinforces the possibility of a "soft landing" for the US as the Fed manages inflation without harming the economy.
With the current tight interest rate policies, gold is also somewhat limited in its price increase. After the strong fluctuations from yesterday's news, it can be seen that gold still cannot reach the peak of $2,000 and is currently trading steadily around $1,987 with little change compared to the same time yesterday.
On the other hand, on the 4-hour analysis chart:
the upward trend with the Trendline has been broken, opening up a downward trend. With the current support level formed at $1,977, the precious metal may once again reach $1,990 before being pushed back and returning to the support area at $1,965, along with a retest of the 89 EMA line.
Thank you for your interest in the article. Have a great day!
As per market expectations, the US Federal Reserve has decided to maintain interest rates at a range of 5.25% to 5.5% as an optimistic signal for the economy. The Fed raised interest rates significantly for most of last year, bringing them to around 5.25% to 5.5%, with the aim of bringing inflation to the target level of 2%.
Since reaching a peak of over 7% last year, inflation has decreased by more than half. However, it still remains above 3%. This could potentially lead the US economy into a recession this year due to the rapid pace of interest rate hikes. However, surprisingly, the largest economy in the world remains strong, with the Fed emphasizing that the US economy is still growing strongly in the third quarter, with low unemployment rates and a resilient banking system. This reinforces the possibility of a "soft landing" for the US as the Fed manages inflation without harming the economy.
With the current tight interest rate policies, gold is also somewhat limited in its price increase. After the strong fluctuations from yesterday's news, it can be seen that gold still cannot reach the peak of $2,000 and is currently trading steadily around $1,987 with little change compared to the same time yesterday.
On the other hand, on the 4-hour analysis chart:
the upward trend with the Trendline has been broken, opening up a downward trend. With the current support level formed at $1,977, the precious metal may once again reach $1,990 before being pushed back and returning to the support area at $1,965, along with a retest of the 89 EMA line.
Thank you for your interest in the article. Have a great day!
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