Gold Price Talking Points
- Gold prices[1] are putting in a vigorous bounce off of 1400 this morning – but is this a corrective move ahead of lower-lows and lower-highs?
- While the longer-term trend in Gold remains as attractive, a non-committal Federal Reserve may keep the pressure on until confirmation is seen towards looser policy options later in the year. This can open the door for re-test of longer-term support levels.
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Gold Prices Bounce From Lower-Low, 1400 Support
Yesterday’s FOMC[8] rate decision has left many market participants scratching their heads. While the bank did cut rates for the first time in a decade, they didn’t offer much clarity for what might be down-the-road and this was likely by design. To put it frankly, they probably don’t know, and wanted to avoid putting their foot too deep in the water of any one direction in the event that they’d need to adapt again in the near-future.
The one takeaway that can be agreed upon and this is confirmed by follow-through price action, but the bank was not as dovish as what markets were looking for. Going into the rate decision there were very realistic possibilities of as many as three cuts by the end of the year. But during the accompanying press conference, Chair
