Latest Gold Price – Holding on to Trend Support as the FOMC Looms in

Gold analysis, prices and charts (XAU / USD)

• Gold continues to use trend support to push higher.
• The FOMC meeting may cause the US dollar to fall.
• IG customer sentiment is mixed.

The price of gold It is moving higher ahead of the Fed’s latest monetary policy decision and comments later in the day and is supported by a set of positive technical signals. Comments from Fed Chairman Jerome Powell after the decision will be key, especially after last month’s Jackson Hole Symposium, where Powell made a notable change in monetary policy by noting that inflation would be allowed to go higher. that the mandate of 2% from the central bank to allow the economy to rebound further. US interest rates are likely to remain at their current ultra-low levels for the next several years, which will keep the downward pressure on the US dollar and increase the value of gold.

Drifting US dollar, what to pay attention to at the FOMC meeting

The daily chart shows that spot gold is trading back above the 20- and 50-day moving averages and holding onto the strong uptrend line from $ 1,451 / oz in mid-March. low. The opening above the 50-day moving average, the first time since mid-June, gives the recent move additional credibility and leaves the month-long high at $ 1,993 / oz. made September 1 the next bullish target if the move continues. The trend support line, the 20- and 50-day moving average, and a series of recent lows as high as $ 1,936 / oz. it can be difficult for sellers to overcome in the short term. All eyes on the Fed’s decision later today to see if the current bullish move continues or breaks.

Daily Gold Price Chart (January – September 16, 2020)

IG customer sentiment data shows that 80.30% of traders have a net long position with a ratio of long to short traders of 4.08 to 1.The number of net long traders is 7.35% higher than yesterday and 1.04% lower than last week, while the number of net short traders is 18.26% lower than yesterday and 8.42% higher than last week. pass.

We generally take a view contrary to crowd sentiment, and the fact that traders are net long suggests that gold prices may continue to fall. The positioning is longer in net terms than yesterday, but less long than last week. The combination of current sentiment and recent changes gives us an additional mixed gold trading bias.

What is your opinion on Gold – Are you bullish or bearish? You can inform us through the form at the end of this article or you can contact the author through Twitter @ nickcawley1.