Gold
Price of gold dive on strong US dollar yesterday again. Yellow metal tested 1214$ and bounced back from there to test a new high above 1227$. This 13$ movement was fueled by dollar and short covering. Currently prices are very stable due to FOMC meet outcome which we have tonight.
Another factor is Trump, Last week in an interview with CNBC, President Trump showed his concern regarding rate hikes which crashed dollar immediately and boosted price of gold. FOMC is an independent entity said by chairman Powell, following Trump’s statement. We do work without any political pressure and our outlook or policy is not effected by politics.
Even though Chairman Powell has cleared the air regarding political pressure, We are yet to see how does Fed responds tonight. If Fed softens its tone then market might read between the lines and could conclude it has some effect of Trump’s last interview.
Currently prices are cooling off near 1221$, A good support on chart stands at 1211$, If traders break and sustain below this level. Then expect further pressure in xauusd up to 1202$- 1192$.
A good resistance on xauusd chart stands at 1229$, If traders break and sustain above our resistance. Then expect mild recovery upto 1236$- 1242$.
Silver
Spot silver price trading at 15.44$, Its also under pressure since last night. A good base on this major commodity stands at 15.30$, If traders break and sustain below this level. Then expect further pressure in this precious metal upto 15.05$- 14.80$.
A good resistance on silver chart stands at 15.70$, If traders break and sustain above our resistance. Then expect mild recovery upto 15.92$- 16.12$.
Crude oil
Crude oil price tried to test 70$ once again and failed too. These attempts are showing how strong resistance is at 70.20$. If market breaks 70.20$ and manage to sustain price above this level. Then expect upper hand by bulls up to 71.40$- 72.70$.
A good support on crude oil chart stands at 67.70$, If market break and sustain below this level. Then expect pressure in price of crude oil up to 66.50$- 65.20$.
Euro
Euro tanked yesterday following dollar strength. It lost nearly 70 pips since its yesterday’s peak. Currently eurusd trading at 1.1680. A good base on this forex pair stands at 1.1640, If market break and sustain below this level. Then expect euro to test up to 1.1600- 1.1570.
A good resistance on this forex pair stands at 1.1720, If traders break and sustain above our resistance. Then expect further recovery up to 1.1760- 1.1799.
Conclusion
We have major event of FOMC meet result today. Fed will decide if it wants to hike further interest rate or not. Main trend would be clear only after FOMC announcement on interest rate only. Till then Gold, Silver and Euro are in weak zone and Crude oil is in positive trend.
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