Gold bulls cannot break 1330 as Fed raise 25bp
|- Fed press conference is now live.
- The $1330 is still a line in the sand.
- The FOMC is considered dovish by the market.
Gold is trading at around 1324 as the Federal Reserve hikes rates by 25bp as expected.
The Fed expects to hike only 3 times this year opposed to the 4 expected by the most hawkish market participants. 3 more rate hikes are expected in 2019 and 2 more in 2020.
The Fed sees 1.9% PCE in 2018 which stays unchanged from previous projections while unemployment is seen at 3.8% in 2018 and 3.6% in 2019.
Fed says: “The economic outlook has strengthened in recent months,” but offered only “a limited dot-plot upgrade: The Fed only went half-way in upgrading the dot-plot. Significant changes for 2019 and 2020 but a minimal one for the long term and no change for this year.” according to FxStreet’s analyst Yohay Elam.
Gold daily chart:
The bulls are 5 points away from the 1330 psychological level while challenging the bearish trendline.
Gold 5-minute chart:
After the 25bp rate hike decision gold went higher and tested 1328 after which it sold off 8 dollars to rebound and make another attempt at 1328. Gold can't find yet a direction, but holds near its daily highs. The press conference might provide some fresh clues.
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