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.