Market Analysis: After the Fed announcement, Gold bulls regain momentum
Source: Economic Events March 25, 2019 - Admiral Markets' Forex Calendar
After the Fed delivered a very dovish statement at its March meeting last Wednesday, declaring that it plans to not only leave interest rates unchanged at 225 to 250 basis points, but that the Fed "dot plot" doesn't advocate any rate hikes in 2019, and only one for 2020. Consequently, the technical picture for Gold can also be considered bullish from a short-term perspective.
The 4-hour chart below displays a clear sequence of successively higher highs and lows after the sharp drop below 1,300 on March 1, and as long as Gold trades below its pre-Fed lows around 1,299 USD, further gains up to 1,330 USD and even a re-test of the current yearly highs around 1,346 USD is an option.
If Gold bears gain back control over the next days and push the precious metal back below 1,300 USD, another push downwards and test of the region around 1,275/277 becomes a serious option.
Source: Admiral Markets MT5 with MT5-SE Add-on Gold Daily chart (between December 13, 2018, to March 22, 2019). Accessed: March 22, 2019 at 10:00pm GMT - Please note: Past performance is not a reliable indicator of future results, or future performance.
In 2014, the value of Gold fell by 1.7%, in 2015, it fell by 10.4%, in 2016 it increased by 8.1%, in 2017 it increased by 13.1%, in 2018, it fell by 1.6%, meaning that after five years, it was up by 6.4%.
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