On Thursday, gold traded upward, playing the results of the FOMC meeting and other geopolitical and economic news.
On Wednesday, the main driver of movements in the market was the meeting of the FOMC, where the regulator has decided to reduce the interest rate by 0.25%. The decision was expected, so the main market reaction has been associated with the Fed's statement and comments Jerome Powell. The regulator said it will follow very closely the changes in economic forecasts, and respond to the adjustment of interest rates. Jerome Powell noted that the rate cut carried out as preventive measures to reduce the negative impact of external factors on the economy. Powell said that further rate reductions must be a very significant change in outlook for the economy. The market took these statements as a signal that the Fed has no plans to soon cut interest rates.
Supportive factor for gold were released today data on the PMI manufacturing and non-manufacturing sectors of China's economy. Both figures were lower than the values of the previous month. Investors also negatively perceived the news about the cancellation of the APEC summit in Chile. Although today the Ministry of Commerce of China said that the cancellation of the summit will not affect the course of trade negotiations. In general, these reports raise investor interest in gold and other defensive assets.
In the graph of the level of 1480.00 developing local upward wave, the immediate goal of which is the level of 1505.00. Medium-term we can expect growth of quotations to 1515.00.
Levels of resistance: 1505.00, 1515.00, 1530.00;
Support levels: 1490.00, 1480.00, 1475.00.
The main scenario - correction to 1490.00 and rising to 1505.00.
Alternative Scenario - an increase to 1515.00 from current levels.
Locally, the market is dominated by moderately positive news background. bovine signals dominate in the graph. Within days we consider buying when prices roll back to the area of 1490.00.
Gold forecast today FORTFS