Fed drives gold higher as FOMC chairman delivered speech last night. Comex xauusd fired from 1343$ to test 1394$ within hours. Yesterday was a turning point. Fed chairman Powell said that he is uncertain about interest rate. Since December 2018 Fed turned dovish from hawkish. In his every statement chairman Powell were saying patience about policy but yesterday he finally used word ‘ uncertainty ‘ . This was enough to crash dollar index and ignite gold prices. Gold exploded within hours and tested above 1394$.

His view on economy was not clear and he did not comment directly on trade war between US & China. He was uncertain about any interest rate hike. We can assume we will not see any further rate hike as planned by Fed this year. We might see a interest rate cut. President Trump already cleared that fed is keeping interest rates too high. We may see some reduction instead increase in interest rate in 2019.

Despite Fed chairman’s uncertain remarks Dow Jones Index is flirting with lifetime high. Its an interesting market and we need to see look through the wild moves. Dow Jones may or may not test another lifetime high but its certain now US started feeling pressure of trade war.

G-20 meeting between Trump & Xi Jinping would be extremely important now. If Washington & Beijing dont reach in middle ground then we may see further highs in precious metals.

Currently comex gold price is trading at 1386$ after making lows of 1377$. Good resistance in xauusd chart stands at 1395$. If traders break and sustain above 1395$. Then expect good rise in comex gold till 1402$- 1409$.

Support in xauusd chart stands at 1375$. If traders break and sustain below 1375$. Then expect mild profit booking in comex gold till 1367$- 1360$.

Conclusion: Comex Gold price trend is positive for now. Avoid selling on these levels. Let the market settle first.

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By marafat