After an initial quick fall to $1,480, the gold price returned to the $1,500 mark. In other words, the Fed’s 0.25% rate cut was already priced in, as we anticipated, and investors remain quite optimistic on bullion.
Gold now starts a new phase. So far this year monetary dovish policy decisions have been one of the bullish factors. Now the room for further cuts by Fed is reduced, while the likelihood of action by the ECB is minimal. It is anyway likely that the trend remains moderately bullish, as investors are looking at gold as a safe asset in a scenario with growing risks of economic slowdown and central banks’ huge appetite for bullion.
Chief analyst at ActivTrades and technical analyst for Italian newspaper 'La Stampa'. Carlo Alberto provides regular commentary for UK outlets including the BBC, Telegraph, the Independent Bloomberg & Reuters. He is also a weekly commentator for CNBC Italy and a columnist for La Stampa. He worked for Bloomberg as their Equity Research Fundamental Analyst before joining brokerage ActivTrades in 2011 to specialize in currency markets and commodities. In 2014 he published a 250-pages book on gold and the gold market, followed in 2018 by a new updated edition.
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© 2019 High Leverage FX - All Rights Reserved.