Fed powers gold again


According to Indian time early morning today we had Fed chairman Powell interview. Its a rare scenario to give interview by a central bank governor but it was a meaningful one as we have some insights now how fed is reacting to new data which are signaling a slow down.

As said in yesterday’s gold forecast lower NFP data could effect Fed interest rate pace in upcoming months. Today’s interview confirmed that stance. Fed chairman said he is not in rush to raise interest rate any further and may exercise patience.

This statement confirmed despite near lifetime high equity markets we have some hidden pressure in US economy. Non farm payroll data just cemented that belief. However we do not have any concrete confirmation as we seen this kind of zig zag jobs data in January too and February data came better than expected.

We need to wait how other data unfolds this month and next month jobs data would be extremely crucial to determine the health of US economy.

Yesterday Gold tested near 1290$ and bounced back from there. Our Mcx tips subscribers enjoyed as gold & silver tips targets achieved. Strong INR helped us reaching our targets.

Currently gold price is trading at 1296.60$. Minor resistance in gold stands at 1302$. If traders break and sustain above 1302$. Then expect good buying in xauusd till 1309$- 1317$.

Support in gold price stands at 1288$. If traders break and sustain below 1288$. Then expect good pressure in xauusd till 1280$- 1272$.

Conclusion: Gold price trading in a range since yesterday. Either side breakout will decide the fate of this precious metals. So trade with levels as trend is still unclear.

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Posted in: Gold Silver Updates

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