Gold price has shot back higher on the surprise Fed rate cut [Video]
|Gold
Pretty much exactly a week ago, gold was trading fairly quietly around $1640. If you had missed the passed week, you would be forgiven for not knowing what all the fuss has been about. However, another wild day of volatility on global financial markets and the gold price has shot back higher on the surprise Fed rate cut. We have been discussing the prospect of buying gold into weakness, but we did not envisage the moves that we have seen to get here. The uptrend support has kicked in (today around $1590) whilst momentum indicators are ticking higher again. The RSI back above 60 (from 50) is positive, whilst Stochastics also ticking higher, around the levels they were at as the February rally kicked in. We still favour long positions from here, but given the wild volatility shows little sign of settling down, we cannot rule out further weakness that would be a chance to buy. The hourly chart shows an old low around $1625 has been a basis of support in the past 12 hours.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.