- Gold is trading 0.34% higher after another slow week.
- The Fed did the precious metal no favours with no changes in policy.
Gold daily chart
Gold has had another tough week as the Fed disappointed the market with no real additional information about the new policies. There was one thing of now as the dot plot is now projecting the next rate rise could be in 2023. There were some outside calls for more stimulus to be added but Fed Chair Powell once again called for more help from the government in the form of fiscal stimulus.
Looking at the chart, the key feature is the marks of lower highs and higher lows. This sideways action has been going on for a month now. The indicators are also firmly planted in the midsection. The MACD histogram and signal lines are near zero and the Relative Strength Index indicator is near 50.
The trend is still very much an uptrend and if the key previous wave highs get broken then the uptrend could be back on. USD 1973.64 per troy ounce is the next level to watch on the upside and then beyond that, USD 2k is next.
Overall, the market is looking to see if the recent dollar bear trend is reversing. The risk enviroment has been precarious, stocks have been moving lower toward the end of the week. Next week the PMI’s are due to be released and this could give us further clarity about the state of the global economy. Another highlight will be Fed Chair Jerome Powell and US Treasury Secretary Mnuchin testify before a Senate committee. They will probably talk about the need for fiscal stimulus but you never know.