The trend in gold prices continued on Wednesday following the Fed’s decision to keep rates unchanged. Gold prices rebounded to new all-time highs as all traders continued to buy the yellow metal. The post-meeting statement by Fed Chairman Jerome Powell called the current state of growth better than it was in the depression, but it is not yet up to scratch.
Technical analysis
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Gold prices continued to rise to new all-time highs as the dollar continued to sink. Prices rose 0.65% as the trend in gold prices continued to accelerate. Support is seen near previous highs at 1,921 and then the 10-day moving average near 1,879. Medium-term momentum has turned positive and continues to accelerate as the Moving Average Divergence Convergence (MACD) histogram prints in black with an upward trajectory pointing to higher prices. The short-term momentum has turned negative as the fast stochastic generated a cross sell signal. Rapid Stochastic is printing a reading of 93 above the overbought trigger level of 80, which could herald a correction. This decrease means that the price acceleration is slowing down. The RSI also rose higher reflecting accelerated positive momentum and is printing a reading of 88, above the overbought trigger level of 70, which could herald a correction.
The Fed kept rates unchanged as expected
The Federal Reserve kept interest rates unchanged, which was widely expected. In addition to keeping rates low, the Fed expressed its commitment to keeping its bond purchases and the variety of liquidity and loan programs. The post-meeting statement rated the current state of growth as better than it was in the depression, but it is not yet up to scratch.
