As was widely expected, the Federal Reserve raised its policy rate by 75 basis points (bps) at the July meeting, taking the target rate range to 2.25%–2.5%. This is just below the Fed’s estimate for a neutral policy stance in the longer run (2.5%). At the press conference, Chair Jerome Powell said that “modestly restrictive” monetary policy is warranted by the current economic fundamentals, including elevated inflation, and mentioned that another outsize rate hike may be necessary at the next meeting in September in order to ensure monetary policy is restrictive.
The overall movement of gold prices was bearish since inflation numbers rose and the U.S dollar index moved bullishly. However, there might be a change in the situation as gold prices currently moving upward while the U.S dollar index stalled and the stock market is trading slightly lower. If gold prices could continue the bullish movement and close above $1,800 then the bullish trend is set to continue. Today’s critical levels to watch: Support: $1,700, $1,680 Resistance: $1,780, $1,800 chart Silver prices bounced from the $18.50 support level and made a bullish close yesterday.
BUY SIGNAL
12712 TARGET 13512
i F WE BREAK DOWN THE LOW OF YESTERDAY; WE WILL GO DONW TO SWEEP 11430 ZONE AGAIN