Fed rate cut
FOMC chairman announced another rate cut of 25 bps last night to boost US economy. This sent already strong dow jones to test even more higher levels. S&P hit new lifetime high & dow jones also hovering near lifetime high. Market was expecting fed will cut interest rate so there was no major surprise from rate cut. However fed chairman signaled that this may be last rate cut this year. We may not see any further rate cut in December.
Gold bounced nearly 10$ & tested near 1500$ after fed signaled there may be no further rate cut this year. Earlier we seen better than expected US GDP numbers which boosted confidence of market and sent gold into weak zone. But fed again pumped the gold up into positive territory.
Tomorrow we will have non farm payroll numbers & unemployment rate . These are extremely important numbers to determine the real health of US economy. If numbers are weak than expectations then we may see gold testing new yearly high next week. However if numbers are better than expect then we may see 1450-1400 soon.
Another factor which is effecting gold is trade war with China. Even though both countries announced that trade deal is done, we did not see any fine print or any concrete evidence of current trade deal. President Trump & Xi Jinping may meet soon then only we will have clear picture about this trade agreement. For now picture is unclear.
Gold is currently trading at 1498$. Good support in xauusd chart stands at 1489$. If trader breaks and sustain below 1489$. Then expect good pressure in this precious metal till 1480$- 1470$.
Resistance on gold chart stands at 1508$. If trader break and sustain above 1508$. Then expect good rise in gold price till 1517$- 1527$.
Conclusion: Comex gold trend is in positive for now. Avoid selling till market is sustaining above technical support.
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