Gold: December 12 review
After bringing an end to three back-to-back rate cuts between July and October, as expected, Fed holds rates unchanged at 1.5% to 1.75% in its December’s policy decision and suggested that the current path of monetary policy was appropriate to support economic growth decision.
After Fed’s decision, Gold moved up and made a high of $1483.45 range yesterday.
Traders should keep an eye on Sunday’s trump administration decision for the deadline at $156 billion dollar of Chinese goods tariff hike between world’s two leading economies, US-China.
Precious markets will be very volatile at this type of trade war tensions and investors will also prefer Gold and Silver as a hedge funds.
Asian stocks traded positive on Thursday after dovish mood by Fed decision yesterday but investor’s remained cautious.
Spot Palladium prices made a record high to continue 13 days and reached almost $1919.00+ range yesterday due to uncertainty of power cut decision at Africa, a major producer country of it.
Dow 30 futures, December contract traded up by +16 points.
By 06.15 AM GMT, US Dollar index futures, December contract traded $97.070 range and it was almost one month low against all leading currencies.
Gold futures, February contract traded around $1479.65 range, up 0.40% at early European sessions.
As per today’s ECB meeting and we should expect some positive news regarding trade war tensions between US and China. This will give negative impact for Gold and Silver.
Expectation of profit booking in hedge funds like Gold and silver will be there in this week.
Entry point – $1479.65- $1482.00 range
And keep R1 $1489.50
And wait S1 $1465.00
And wait S2 $1460.00
And wait S3 $1450.00