Gold Price Outlook Post-Fed Meeting: Analysis and Forecast
Gold is currently facing a critical juncture following the Federal Reserve’s recent actions. According to Joaquin Monfort, European Editor at FXStreet, gold prices have retreated due to improved market sentiment and reduced safe-haven demand.
Fed’s Impact on Gold Prices
After the Fed’s May policy meeting, gold experienced a significant surge of over $30 per ounce. This rally was fueled by the Fed’s decision to maintain interest rates and slow the reduction of its US Treasury holdings, signaling a mildly dovish stance.
However, the FOMC also issued a hawkish statement, citing a lack of progress towards the Committee’s inflation target. Despite indications of no immediate rate cuts, the possibility of further hikes remains uncertain.
Technical Analysis
From a technical perspective, spot gold appears to have completed a bearish Measured Move pattern, reaching the Fibonacci 0.681 price objective at $2,286. This development suggests a potential uptrend in prices.
Future Price Movement
Monfort emphasizes that gold is currently in a neutral position, with a break below the Fibonacci target lows at $2,285 indicating further downside potential. Conversely, a break above key resistance levels could initiate a bullish trend, with a retest of previous highs at $2,400.
Long-Term Forecast
Looking ahead, Monfort predicts a positive price trajectory for gold in the medium to long term, highlighting its potential for further gains.
Intraday Trading Update
In intraday trading on Thursday, spot gold recorded a session low of $2,285.54 per ounce, reflecting a 1.20% decrease. At the time of writing, it was trading at $2,291.67 per ounce.
Conclusion
With the Fed’s decisions influencing market sentiment, gold prices are navigating a complex landscape. Understanding the technical patterns and key price levels is essential for investors seeking to capitalize on potential opportunities in the precious metal market. Stay informed and stay ahead of the game with expert analysis and forecasts.