Senior Economic & Technical Adviser
The Fed's Decision Today, and How will Gold's Movements be?
The Federal Reserve will hold its fifth meeting this year to discuss the fate of interest rates, amid expectations of raising them for the fourth time in a row, by 0.75%.
This comes after the annual inflation rate in the United States reached its highest level in more than 40 years last June at 9.1%, compared to 8.8% in May.
The Federal Reserve raised interest rates for the first time in nearly 4 years last March by 0.25%, and by 0.5% at the May meeting, then by 0.75% in June, the highest rate since 1994.
Fed Governor Christopher Waller, one of the more hawkish policymakers, endorsed a 75 basis point move, and Atlanta Fed President Raphael Bostik warned that moving too large would have spillover effects, according to Bloomberg.
Gold price traded positively to approach the pivotal resistance 1727, which represents one of the keys to the next trend along with the support 1710, the price needs to cross one of these two levels to determine its next destination.
We point out that breaking the mentioned support will pressure the price to achieve more decline and return to the main bearish track whose next target is located at 1680 while breaching the resistance represents the key to resuming the bullish corrective wave that targets 1756 as the next positive station.