Gold Rises As Fed Leaves Interest Rate Unchanged

FXOpen

The price of Gold extended a downside movement on Friday, dragging the yellow metal to less than $1340 an ounce as bears go for a short-term correction. The technical bias remains bullish because of a Higher Low in the recent downside move.

Technical Analysis

As of this writing, the precious metal is being traded near $1335 an ounce. A hurdle may be noted around $1342, the horizontal resistance area ahead of $1352, the swing high of the latest major upside rally, and then $1400 for a long-run.

Gold Rises As Fed Leaves Interest Rate Unchanged

On the downside, the yellow metal is likely to find a support around $1329 an ounce, a major horizontal support area ahead of $1306, the swing low of the latest major downside move, and then $1300, the psychological number. The technical bias will remain bullish as long as the $1329 support area is intact.

Fed Monetary Policy

A heavily divided Federal Reserve left short-term interest rates unchanged but said the case for a rate increase “has strengthened”, in a strong signal that a move is likely before the end of the year. 3 out of 10 of the US Central Bank’s rate-setters voted against the decision and called for an immediate increase. But the Fed said that for the time being it wanted to keep the policy on hold as it waits for further evidence of the progress towards its objectives, leaving the target range for the federal funds rate at 0.25 per cent to 0.5 per cent.

Trade Idea

Considering the overall technical and fundamental outlook, buying the precious metal on dips still appears to be a good strategy in short to medium term.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

Forex Analysis
Financial Market News
Forex Market Insights

AUD/USD Consolidates Gains While NZD/USD Dips

AUD/USD is consolidating gains near the 0.6420 zone. NZD/USD is trimming gains and struggling to stay above the 0.5945 pivot zone.

Important Takeaways for AUD/USD and NZD/USD Analysis Today

· The Aussie Dollar started a

An Important Bullish Pattern Forms on the NIO Share Price Chart
Shares

An Important Bullish Pattern Forms on the NIO Share Price Chart

Today, the share price of NIO Inc. (NIO), a Chinese manufacturer of "smart" electric vehicles, is trading above $4 – a development that may be viewed as an optimistic scenario following the drop to $3 in the first half of April,

S&P 500 Chart Analysis Ahead of the Busiest Week of Earnings Season
Indices

S&P 500 Chart Analysis Ahead of the Busiest Week of Earnings Season

Despite the fact that President Trump’s earlier decision to impose tariffs (at higher rates than expected) shook the stock markets, the S&P 500 index (US SPX 500 mini on FXOpen) could still end April without significant losses

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.