As the New York trading session ends, gold sits in the green for the day above a key technical indicator that is it's 200-day moving average, an indicator that suggests changes in momentum to the up or downside. In this case, gold's price broke above the 200 DMA and closed right on it yesterday. Currently, gold is above that moving average and could end the day like that.
The Fed said that they would begin tapering, but they didn't know when exactly. They gave us an idea that the reduction of bond-buying may happen late this year, but it still gives no insight on whether they will start hiking interest rates. I think gold and the greenback will go back and forth between investor demand until we get a clearer picture of what's going on, so the best way to gauge gold's performance could probably be on a week-to-week basis. This week looks more promising for the precious metal as the Jackson Hole Symposium caused no big demand spike for the US dollar. Plus, if gold can close above the 200 DMA, we could be in for a solid week for gold.
Today's candle suggests that we could see some rejection of the lows on this stair-like pattern gold has been making since mid August. The blue line is gold's 50 DMA while the red is the 200 DMA; a death cross did happen, but price did just break above the 200 which is a bullish sign. If price were to break higher, it would likely test the double top around $1831.
9/24/2021 The People's Bank of China banned all crypto transactions on overseas Chinese services along with its domestic ban. Bitcoin is down over 8% today and Ethereum is down 11.48%. Our outlook I think we're seeing a lot of noise around China and their condemning of cryptocurrencies before they digitize their own. In the short […]
Let's look into the Bank of England's Monetary Policy Summary which took place on Thursday the 23rd of September, 2021. Quick Summary: BoE keeps interest rates unchanged at 0.10% BoE will maintain its asset purchasing target at £875B The vote to keep policy unchanged passed with a 7-2 vote The minutes of the MPC meeting […]
9/23/2021 The precious metal snapped three days of gains and tumbled back down to the support range from $1740s-1760s approximately. Gold is down -.56% on the day going into the opening of the NY session. Our outlook Gold will likely rise on the US indices falling, and is usually due to slowing economic growth. Because […]
9/21/2021 Bitcoin Update For the past month, Bitcoin went on a tear rising over 20% from the beginning of August. Recently, however, China and other risk-off factors have contributed to a 23% decline from the recent highs around $52,760. Now the most prominent crypto has touched these monthly lows which could be a potentially good […]