After Powell's speech, GOLD prices plummeted
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After the Federal Reserve cut interest rates by 50 basis points, 
XAUUSD Spot delivery soared to 2,600.15 USD/ounce, reaching a new era record high. But after Powell's speech, gold prices plummeted, currently trading around 2,563 USD/ounce. Powell said at the press conference that the 50 basis point rate cut “is not a fixed pace of new rate cuts.”
On Wednesday local time, the US Federal Open Market Committee (FOMC) announced a 50 basis point interest rate cut at the end of its two-day policy meeting in Washington, lowering its target range. target the federal funds rate down to 4.75%-5%. This is the first time the Federal Reserve has cut interest rates since March 2020.
Fed officials expect interest rates to fall to 4.4% by the end of 2024 and to 3.4% in 2025. This decision to cut interest rates was not supported by all FOMC members.
The statement shows that one person voted against the 50 basis point rate cut and Fed Governor Bowman, who voted against it, supported the 25 basis point rate cut.
Thus, Bowman became the first Fed governor since 2005 to vote against the decision of a majority of FOMC members at the FOMC interest rate meeting.
Summary of Jerome Powell's speech
Powell said: "We are recalibrating our policy stance; nothing in our (economic) forecasts suggests that we are rushing to act; Fed economic forecasts are basic forecasts; the actual actions we take will depend on how the economy develops. If appropriate, we can speed up or slow down the pace of interest rate cuts , or even choose to pause; this 50 basis point cut does not mean we are rushing to act.”
“I don't see any signs right now that the likelihood of a recession has increased,” Powell said. I don't see that. You will see the economy growing at a steady pace, see inflation decreasing. You'll see the workforce, the market remain at a very stable level, so I don't see that right now."
Powell's indication that if appropriate, the Fed could speed up or slow down the pace of rate cuts, or even choose to pause this 50 basis point rate cut, does not indicate the Fed is ready to act. This has damaged market sentiment that the Fed will cut interest rates more aggressively in the future, which has weakened gold prices. But it does not mean a basic trend because the basic trend will still be bullish, because the path to cutting interest rates by the Fed is still very long and data will continue to be the next catalyst.
The reason to say that the path to cutting interest rates is still very long is that readers can pay attention to the details that "in the shortest term", Fed officials expect interest rates to drop to 4.4% by the end of 2024. and down to 3.4% by 2025.
Analysis of technical prospects forXAUUSD
Although gold corrected significantly on yesterday's trading day after renewing its all-time high in the $2,600 area, this was also the target increase that readers noticed in the weekly publication.
Technically, the adjustment from the original price level is not an unusual sign of the trend. The current trend of gold price is still bullish with the price channel as the main trend and the EMA21 as the main support.
As long as gold remains within the price channel, the technical outlook remains bullish. Meanwhile, the Relative Strength Index is pointing up, showing that momentum and room for price growth are still ahead.
Once gold breaks above the 0.618% Fibonacci extension it will be in position to retest the all-time high once again and gold sustaining price activity above the 0.50% Fibonacci extension is a positive signal for the trend. short-term upward trend.
During the day, the uptrend of gold prices will be noticed by the following price points.
Support: 2,561 – 2,546 – 2,540USD
Resistance: 2,582USD
SELL XAUUSD PRICE 2586 - 2584⚡️
↠↠ Stoploss 2590
→Take Profit 1 2579
↨
→Take Profit 2 2574
BUY XAUUSD PRICE 2524 - 2526⚡️
↠↠ Stoploss 2520
→Take Profit 1 2531
↨
→Take Profit 2 2536
XAUUSD Spot delivery soared to 2,600.15 USD/ounce, reaching a new era record high. But after Powell's speech, gold prices plummeted, currently trading around 2,563 USD/ounce. Powell said at the press conference that the 50 basis point rate cut “is not a fixed pace of new rate cuts.”On Wednesday local time, the US Federal Open Market Committee (FOMC) announced a 50 basis point interest rate cut at the end of its two-day policy meeting in Washington, lowering its target range. target the federal funds rate down to 4.75%-5%. This is the first time the Federal Reserve has cut interest rates since March 2020.
Fed officials expect interest rates to fall to 4.4% by the end of 2024 and to 3.4% in 2025. This decision to cut interest rates was not supported by all FOMC members.
The statement shows that one person voted against the 50 basis point rate cut and Fed Governor Bowman, who voted against it, supported the 25 basis point rate cut.
Thus, Bowman became the first Fed governor since 2005 to vote against the decision of a majority of FOMC members at the FOMC interest rate meeting.
Summary of Jerome Powell's speech
Powell said: "We are recalibrating our policy stance; nothing in our (economic) forecasts suggests that we are rushing to act; Fed economic forecasts are basic forecasts; the actual actions we take will depend on how the economy develops. If appropriate, we can speed up or slow down the pace of interest rate cuts , or even choose to pause; this 50 basis point cut does not mean we are rushing to act.”
“I don't see any signs right now that the likelihood of a recession has increased,” Powell said. I don't see that. You will see the economy growing at a steady pace, see inflation decreasing. You'll see the workforce, the market remain at a very stable level, so I don't see that right now."
Powell's indication that if appropriate, the Fed could speed up or slow down the pace of rate cuts, or even choose to pause this 50 basis point rate cut, does not indicate the Fed is ready to act. This has damaged market sentiment that the Fed will cut interest rates more aggressively in the future, which has weakened gold prices. But it does not mean a basic trend because the basic trend will still be bullish, because the path to cutting interest rates by the Fed is still very long and data will continue to be the next catalyst.
The reason to say that the path to cutting interest rates is still very long is that readers can pay attention to the details that "in the shortest term", Fed officials expect interest rates to drop to 4.4% by the end of 2024. and down to 3.4% by 2025.
Analysis of technical prospects for
XAUUSD Although gold corrected significantly on yesterday's trading day after renewing its all-time high in the $2,600 area, this was also the target increase that readers noticed in the weekly publication.
Technically, the adjustment from the original price level is not an unusual sign of the trend. The current trend of gold price is still bullish with the price channel as the main trend and the EMA21 as the main support.
As long as gold remains within the price channel, the technical outlook remains bullish. Meanwhile, the Relative Strength Index is pointing up, showing that momentum and room for price growth are still ahead.
Once gold breaks above the 0.618% Fibonacci extension it will be in position to retest the all-time high once again and gold sustaining price activity above the 0.50% Fibonacci extension is a positive signal for the trend. short-term upward trend.
During the day, the uptrend of gold prices will be noticed by the following price points.
Support: 2,561 – 2,546 – 2,540USD
Resistance: 2,582USD
SELL XAUUSD PRICE 2586 - 2584⚡️
↠↠ Stoploss 2590
→Take Profit 1 2579
↨
→Take Profit 2 2574
BUY XAUUSD PRICE 2524 - 2526⚡️
↠↠ Stoploss 2520
→Take Profit 1 2531
↨
→Take Profit 2 2536
Transaction en cours
Plan SELL + 30pips close a part move SL to entry.🔥Note
According to data from the US Department of Labor on Thursday, initial claims fell by 12,000 to 219,000 in the week ended September 14. This figure is lower than the estimates of all surveys of economic experts. This period also corresponds to the survey for the September jobs report.Note
Gold prices recovered on Thursday (September 19), when the US Federal Reserve (Fed) launched a monetary easing cycle with a 0.5 percentage point reduction in interest rates, pushing gold prices to highs. all-time, just a few cents below the key ceiling of $2,600/oz in the previous session.Note
Note
Gold prices hit a new record high above $2,610 on Friday on growing expectations that global central banks will "follow" the Fed in easing policy and cutting interest rates. Lower interest rates are positive for gold, as they reduce the opportunity cost of holding non-yielding assets, making gold more attractive to investors.Note
World gold prices increased sharply in the trading session on Friday (September 20), with spot gold prices officially surpassing the important barrier of 2,600 USD/oz for the first time in history. The possibility of the US Federal Reserve (Fed) continuing to cut interest rates and geopolitical tensions in the Middle East act as direct catalysts for this breakthrough in gold.Note
In a survey on Wall Street, 19 analysts participated in the survey, of which 47% said that gold prices would continue to increase, 47% said that gold prices would go sideways and only 11% predicted that gold prices would decrease. .
Similarly, in an online survey on Main Street, of the 189 investors who responded to the survey, 68% thought gold prices would increase, 15% thought gold prices would decrease and the remaining 17% predicted gold prices would decrease. horizontal.
Note
Today's world gold price is listed on Kitco at 2,619 USD/ounce, down 3 USD/ounce compared to early yesterday morning.
Gold prices decreased slightly but still remained above the highest level in history after the US Federal Reserve (Fed) lowered interest rates by 0.5%.
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