Gold responds to Fed's unlimited QE Announcement

Russell Shor, CFTe, MFTA FXCM

The below left is the daily time frame of XAUUSD. The precious metal has appreciated over the last three sessions and is now challenging its black 20-day SMA (aqua ellipse). If it crosses and the SMA turns up, these will be considered as bullish developments Moreover, the RSI is crossing to the bullish side of 50 (blue rectangle), which may be indicative of an underlying bullish momentum. Gold is responding to the unlimited QE policy adopted by the FED. This is because ultimately QE should result in inflation, which tends to lead the precious metal.

Past performance is not an indicator of future results

Chart Source: FXCM Marketscope 2.0

Author

Russell Shor, CFTe, MFTA

FXCM

Russell Shor (MSTA, CFTe, MFTA) has an Honours Degree in Economics from the University of South Africa and holds the coveted Certified Financial Technician and Master of Financial Technical Analysis qualifications from the Interna

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