Will the Federal Reserve succeed in shaking gold?

The next round of Fed policy is expected in December. An increase in rates at the end of the September session was predictable; the market reaction to gold was unpredictable. The stock market fell in the past month, while yields on Treasury bonds and the dollar rose.

Yellow metal, which is usually traded in reverse relation to US currency, starts in August with more than $ 1,200 key tokens. Experts have had various assessments of the dynamics of precious metals over the past three months. Some see the trend rising, others see weakness because, for example, in April, gold valued at $ 1365 an ounce.

Will the Federal Reserve succeed in shaking gold

As intermittent elections lead to congressional split, investors suggest that Donald Trump’s ideas may not be realized and that the Federal Reserve should be reduced as part of a rigorous policy. The question arises as to whether precious metals stand at around $ 1,200 or higher? Probably yes, if the stock market is with the dollar, it will provide the necessary support.

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The Democrats’ stock market in 2020 seems unlikely to capture Senate control; Republicans are responsible for existing policies for businesses. However, if the Democrats are willing to investigate the tropical entrepreneurial activity and the alleged deal between Russia and his campaign headquarters, this may be under pressure. In addition, they may try to reconsider the process. With no clear trend in December, prices dropped a day earlier, with a weak dollar, at $ 2.40 at $ 1,228. $ 00 per ounce. However, in terms of technical analysis, these contracts are sold, and the chart only shows a purchase if the rate returns to the 100-day moving average at $ 1,215.06.

Market analysts state that “the market is still volatile, and the process is impossible, even though the trade is above the average of 20 days and 100 days.” They also write: “Find the stimulus that can be Gold market prices will be tight to the next resistance level of $ 1,239-1240. The fate of gold can be determined by the Fed. The final statement after the meeting on Thursday may contain tips on what the regulator is about to do in December. According to the data on Wednesday, futures trading shares of Qarz al-Hassesse funds estimate an increase in policy ceilings by more than 72% next month. However, a 10% decline last month suggests that precious metals have a chance of survival under such conditions.


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