Gold technical analysis - Support levels still hold as Powell speaks

Gold holds 0.45% higher as Powell testifies before the joint committee.
The support level of USD 1450 per ounce is still holding.

Rajan Dhall, MSTA FX Daily

Key Comments From Powell:

The US faces longer-term issues, including labor force participation and productivity

Less Room For Rate Cuts Compared With Before - New Normal Is Lower Rates, Inflation & Economic Growth

The Fed thinks it has repo market issues under control

On longer-term interest rates they have just been declining for 40 years now because inflation being lower and being under control

Lower interest rates, lower inflation, and you're probably seeing that all over the world.

Gold Daily Chart

Looking at the gold chart below the USD 1450 per ounce level has held firm.

There was also some trendline support from an internal trendline that was respected in the past.

Now the most prominent resistance is at USD 1480 per ounce.

The price has formed this bull flag pattern now but it has a long way to go to reach the top of the flag.

Author

Rajan Dhall, MSTA

FX Daily

Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.

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