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Saturday, May 28, 2022

Gold hits previous resistance

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Gold markets have fallen quite significantly during the trading session on Tuesday and have once again shown that traders are hesitant. Now I see quite likely that there will be high support either at the $1920 level or at the $1885 level, which are levels where gold has found a lot of resistance in the past and so now it should hold to show that it is still in good shape.

Video gold price predictions 03/16/22

There are a lot of doubts as to whether a double top has just been made on the chart and we think if we interpret it that way we would be at another time where gold fails to really take off to the upside. Despite that comment I recognize that the recent rally has been significant and that it is too early to say that the uptrend is over, but the truth is that the last two sessions have been extremely negative and now gold needs the Federal Reserve rescue him.

Let’s keep in mind that today the Fed meeting begins and that tomorrow after the end of it, it will announce its decisions on monetary policy and interest rates. At the moment we know that they plan to raise rates by 25 basis points, but the question is what tone they are going to use in the subsequent press conference. Should the entity go protectionist, supportive of stimulus, then gold could get a very significant bullish boost, while if it stays anti-stimulus gold could suffer. In other words, I think people are going to hold their breath until the meeting is over because it’s crucial for a lot of financial markets.

To see all the economic events of the day, we recommend you visit our economic calendar.

This article was originally published on FX Empire

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