GOLD: growth after the US Federal Reserve meeting

18 June, 2015

Buy on a level breakthrough of 1190 with 1204 target. Stop loss = 1180.

Reason for the trading strategy

Yesterday, the US Federal Reserve kept its key interest rate unchanged in the range of 0-0.25%, as expected. According to J. Yellen, the economic conditions have not yet justified an interest rate increase. The US Federal Reserve lowered the forecast for US GDP growth for 2015 from 2.3-2.7% to 1.8-2.0% and raised the unemployment rate forecast from 5.0%-5.2% to 5.2%-5.3%. The inflation forecast in 2015 remains unchanged at 0.6%-0.8%. Most US Federal Reserve officials expect one or two rate increases this year (up to 0.5%-0.75% by the end of this year). According to J. Yellen, the importance of the first rate increase should not be overestimated. She believes that there is still some cyclical weakness in the labor market, and the current year inflation will remain low due to low oil and import prices.


Source link  
XAUUSD at major resistance, time to sell

We turn bearish below 1198 resistance (Fibonacci retracement, horizontal resistance) as we prepare to see a strong move down to 1176 support (Fibonacci retracement, recent swing low support, Fibonacci projection)...

The RBA has kept its key interest rate unchanged

Today, the Reserve Bank of Australia kept its key interest rate unchanged at 2%, as expected. The January data on Australia labor market and inflation for Q4 2015 did not propose the monetary policy easing at today meeting...

The decline in the volume of the UK industrial production shattered the pound

In November, the volume of the UK industrial production decreased by 0.7% (m/m), with a forecast of 0% (m/m). The manufacturing output was also smaller than the forecast, having decreased by 0.4% (m/m)...


GOLD: consolidation above the level 1189

Yesterdays US macroeconomic statistics put pressure on the profitability of the US government bonds and supported the demand for gold. On the level breakthrough of $1189, opening the next set of long positions in gold is worth considering...

Inflation in the UK is again below zero

In September, the UK consumer price index dropped from 0 to -0.1% in annualized terms. This year, inflation was below zero only in April. Reduced inflationary pressures suggest that the cycle of monetary tightening in the country will be postponed to a later time...

In the short term, the price of gold could test the $ 1169 level

This week, placement of the 3-month US bonds with a yield of about 0% does not attract the attention of investors who are shifting their attention to alternative investments such as gold and high-yield bonds of developing countries...


The US foreign trade data puts pressure on the dollar

In August, the US trade balance fell from - 41.8 billion to - 48.3 billion dollars. The decline, included in the structure of GDP, reduces the likelihood of an early tightening of monetary policy in the US and supports gold prices...

The deflation in the euro zone pushes the euro to the $ 1.11 level.

Yesterday's rise in the European stock markets and the euro's decline reflects expectations of future expansion of the ECB asset purchases program in September against the background of increasing deflationary processes in the euro zone. Last month...

GOLD: consolidation higher than the 1121 level

Today at 12.30 GMT, the figures for the US merchandise trading balance will be published. The expected growth rate from to minus $59.1 billion to minus $ 57.3 billion will support the world's reserve currency...

  


Share: