Gold
Federal Reserve finally cut interest rate of 0.25%. This is first time fed gave a relief to interest payers since recession of 2008. No doubt market reacted badly and tanked from peaks. Dow Jones crashed from 27250 to 26850 within hours. Gold crashed from 1432$ to 1410$. Market reacted as we finally gave a nod from Federal reserve that economy is not fit and all unlike President Trump who is in denial and says US economy is strongest.
FOMC president suggested we may see further rate cuts. He did not ruled out further rate cuts which suggest many problems with US data system which suggests no problem at all in economy.
Dollar Index got a boost last night which resulted more pressure in precious metals. President Trump gave a hint about on going trade war in his cryptic tweets. That China is stalling trade talks and he may take action very soon. So again a threat which gives market a reason to worry. Dow Jones is in panic mode and free falling since FOMC announced rate cut. Further crash in DJIA Index may result in panic situation.
We have Unemployment rate & non farm payroll data tomorrow. So stay cautious if you are taking position near data then you have to very cautious. Its a trend reversal data and many times we have seen 15-20$ movement within hours.
For gold price is trading at 1408$. Good support in xauusd chart stands at 1398$. If traders break and sustain below 1398$. Then expect good pressure in comex gold till 1390$- 1382$.
Resistance in xauusd chart stands at 1420$. If market break and sustain above 1420$. Then expect good rise in comex gold till 1428$- 1436$.
Conclusion: Comex gold trend is weak for now as chart has turned negative after its crash. 1398$ is good support in market which is a trend reversal point on bigger time frame charts. Once market close below 1398$ we might see more panic in precious metals. Stay cautious on lower levels.
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