Gold traded sideways for most of this week with prices broadly trapped between $3,400 and $3,880. But it broke below the latter following yesterday’s Federal Reserve rate announcement, along with the FOMC’s Summary of Economic Projections and Fed Chair Powell’s subsequent press conference.
The pullback coincided with a rally in the US dollar, and gold drifted lower overnight. It dropped below $3,350 on the European open, but then began to recover. The gold price has been relatively resilient of late, despite falling back below the significant $3,400 level on Monday.
It has continued to trade above its 20, 50 and 100-day moving averages, for now. Its daily MACD has been creeping higher since falling back to neutral levels this time last month, and it remains within sight of its all-time high from April. But the short-term outlook remains uncertain, and many traders will be basing their decisions on where the US dollar goes next.
Source: TN Trader
Meanwhile, silver fell overnight, pulling back further from recent highs above $37 per ounce. It is now closing in on $36, an area around which silver consolidated for the best part of a fortnight earlier this month. It will be interesting to see if it holds this level or retreats further as the daily MACD resets from overbought levels.
