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Gold is locally supported by the FED

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Gold quotes are growing. Now, the price is moving within the horizontal channel of $1480-1510 per troy ounce, where the asset has been trading since early October. During the trading session on Thursday, quotes rose from $1495 (mid-channel) to $1510 (upper limit of the channel). With a high probability, the local uptrend will continue after a small consolidation near the resistance level of $1510. In this case, the asset is expected to go up to $ 1530 and higher.

The local support was provided by the decision of the US Federal Reserve: they reduced the interest rate by 25 basis points to the target range of 1.5% to 1.75%. In general, such a decline was expected and priced in. However, some of the FOMC statements indicate the possibility of a further reduction. Also, in the medium term, traders need to be careful as the net long positions in gold are almost at historical values. Traders are likely to fix their profits soon, which will reverse the quotes.

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Source: https://olymptrade.com/
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