Gold Rally Shows No Signs of Stopping
Gold Soaring
Gold prices are continuing to soar higher midweek with the safe-haven benefiting from the collapse in USD. The Dollar has plunged amidst worsening US sentiment and speculation that the Fed was involved in joint intervention with the BOJ at the end of last week to impact USDJPY rates. Ongoing geopolitical uncertainties and a wider investor shunning of the Dollar has seen demand for gold ballooning with the futures market now up almost 25% on the year. With USD poised for furtehr weakness given the global backdrop, gold prices look set to continue higher near-term. Indeed, the lack of action in crypto markets means that gold is the bets show in town right now.
Fed in Focus
Looking ahead today traders will be watching the FOMC with the Fed expected to keep rates on hold while striking a more neutral tone. It would likely take some firmly hawkish comments from the Fed at this stage to fuel a rebound in USD. More likely is that we see some stalling in USD today on the back of the Fed before a continuation lower, paving the way for a further rally in gold near-term. Indeed, if traders sense any dovishness from the Fed today, that could amplify the current dynamic pushing USD down harder and gold higher into the weekend.
Technical Views
Gold
The rally in gold has seen the market breaking out above the bull channel highs and above the 52,50 level. With momentum studies firmly bullish here focus is on a continuation higher with 5000 and the bull channel highs the key support to note near-term.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.