Gold
As expected FOMC hiked interest rate by 0.25%. I was expecting this rate hike to be final in 2018 but Fed had another plan. Fed Chairman Powell cleared that he is looking for one last hike in December. This was not purely unexpected but this is very strong signal how Fed thinks about US economy. Currently spot gold trading at 1196$, Comex futures trading at 1200$.
- Fed is very confident about US economy and its gradually hiking interest rate.
- December rate hike could be second last before Fed pause its rate hiking streak.
- Fed target is near 3% which is about to achieve in next 2-3 rate hikes ( If going by 0.25% )
- Fed seems unaffected by US and China’s ongoing trade dispute hence looking extremely positive on markets.
- Fed is not caring about President Trump who always criticize Fed for hiking rate.
- Fed chairman cleared yesterday that he is not affected by political pressure and will do his work.
Technical gold chart has a good resistance at 1202$. If market break and sustain above our resistance. Then expect good rise in xauusd prices till 1209$- 1217$.
Good support in xauusd price stands at 1188$. Once market break and sustain below this level. Then expect bloodbath in xauusd till 1180$- 1174$.
Silver
Spot silver price trading under pressure after Fed hiked interest rate which resulted in rising dollar index. Currently trading at 14.40$. A good base on this precious metal stands at 14.20$. If traders break and sustain below this level. Then expect good pressure in xagusd till 14$- 13.80$.
Resistance in silver price stands at 14.55$. If traders fulfill this resistance and manage to sustain above 14.55$. Then expect market reversal which may drive prices till 14.77$- 14.99$.
Crude oil
Nymex Crude oil prices firing since morning and currently cruising at 72.30$. A good base on this commodity chart stands at 71.50$. If traders break and sustain below this level. Then expect good pressure in oil prices till 70.70$- 70.10$.
Resistance in Nymex oil prices stands at 73.20$. If market break and sustain above this resistance. Then expect good buying which may drive prices till 73.80$- 74.60$.
Euro
Euro is in decline since last night and continuing its downward journey. Currently trading at 1.1705. A good resistance in this forex pair stands at 1.1750. Only above this we may see some fresh buying. If traders break and sustain above this level. Then expect good buying till 1.1790- 1.1830.
A good base on euro chart stands at 1.1670. If market break and sustain below this level. Then expect good pressure till 1.1630- 1.1600.
Conclusion
Today we have US GDP numbers and ECB chairman speech. Both events would be important and will give an idea about two major economies in the world. Currently Comex Gold, Silver trend is down but lets wait for data. Crude oil is positive and Euro is weak.
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