Early yesterday morning, gold hit an all-time intra-day high of $3,057. The move followed the Federal Reserve meeting and subsequent press conference from Fed Chair Jerome Powell. The key takeaways were that the Fed’s FOMC still expects to cut rates by 50 basis points this year, the same as in December.
The central bank will be paring back its balance sheet reduction, selling $5 billion in US Treasuries per month, rather than the current $25 billion, starting next month. And while it raised its inflation forecast, and dropped its expectations for US growth this year, it also downplayed inflation risks from tariffs.
All-in-all, most observers viewed the outcome as more dovish than it could have been. Gold has pulled back from its highs, but not significantly. The daily MACD remains elevated, but not seriously overbought.
Source: TN Trader
Nevertheless, it could benefit from more of a pullback to take it down to levels from which another rally could start. Gold could certainly push higher from current levels. But a test of $3,000 to see if it holds as support cannot be ruled out. And a break below there raises the likelihood of a deeper pullback.
