The price of GOLD could find support again if the Federal Reserve is dovish in this upcoming meeting. Will the price move higher or lower?
Watch the video to learn more…
In this video we are going to take a look at the key levels on Gold and what could happen in this upcoming FOMC federal funds rate decision.
This meeting is going to be a little trickier than usual as the Federal Reserve needs to be considerate towards the economy and the banking system. The latest jobs and core CPI data suggests the Fed should continue to hike in this meeting. However, the banking system crises would want the Fed to pause or at least talk of pausing in the next meeting.
The dot-plot will be watched closely by investors to see if policy makers are looking to hike rates further. Federal Reserve Chairman Powell in his recent visit to congress did mention the potential need to hike rates beyond 5.00%. However, he is unlikely to use such language in this meeting.
Looking at the price of Gold we can see that price has reached the weekly highs around $2000.00 and rejected. This could be some profit taking from the recent rally. If the Fed is going to be dovish in this meeting then the price of Gold could move much higher, with the range highs being the $2050.00 level. If for some reason the Fed is aggressive then the price of Gold could head lower towards the recently formed lows at $1915.00.
The price on the chart has traded through multiple technical levels and some observations included:
- The price of Gold found resistance at weekly highs of $2000.00.
- Price has since fallen from this level, which was likely due to the recent rally.
- If the Fed is going to give a dovish statement then the price of Gold could rally back to the highs of $2000.00 or even beyond.
- Price is trading within a large range and buyers might want to target the highs at $2050.00.
Have you watched our AUDUSD analysis? You can see it here.
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