(Kitco News) – The X gold community is buzzing as retail traders scramble to read the tea leaves and profit from what is expected to be the FOMC’s key interest rate decision. .
The central bank is scheduled to announce its interest rate decision at 2pm ET on Wednesday, and while analysts and traders generally agree that a cut is not on the table this month, there is still potential for drama. .
The Fed is set to release its first updated ‘dot plot’, or forecast rate path, since its December meeting, with many market participants betting the latest FOMC voter data could point to a 50bps rate cut this year instead of 75bps. I think there is. It is also possible that the Fed will reverse its implicit easing bias and set monetary policy from a more neutral standpoint.
All of this adds significantly to the potential volatility for the gold bug, as changes in the timing and size of interest rate cuts this year are likely to push gold prices lower.
“Sideways pressure on #XAUUSD gold is above 2162 and is not continuing. At this time, gold prices are most likely to correct around 2150/2165. #FOMC #Gold” I have written X user Emiy_XAUUSD.
“Federal Reserve interest rates are likely to bottom and rise again early in the morning,” he added. “So if the data doesn’t drop below 2138 after it’s released, you can try going long!”
with follow up postand shared his assessment of the Fed’s potential impact on gold prices.
“Both the Federal Reserve and the markets are currently in a state of relative complexity,” she wrote. “The interest rate resolution and subsequent #Powell speech are focused on whether we will cut rates two or three times this year! If rates are cut three times as much as previously expected, and rate cuts begin in May. If this happens, US indexes are expected to fall further and #gold prices could rise further. Conversely, if interest rate cut expectations are lowered, the recent bull market will officially end and gold prices will rise above 2150. A drop of 40 will likely officially trigger a callback.”
“#XAUUSD trendline broken” I have written Demetrius RO6.
“It could be fake. Let’s wait for a retest and a bulls’ close above 2168. But I would hold off on selling.”
X user TradingDame said: found the peak XAUUSD is at $2,195.10 on the daily chart, “indicating that it is expected to decline to support at 2144.34, 2087.89, 2057.40, and at least the major support at 1984.20.”
X user HDcharting was closely monitoring the technical situation for the US dollar.
“#USD ahead of #FOMC” they say I have written. “Are you going to get rejected again this week?”
“Watch that MACD.”
Disclaimer: The views expressed in this article are those of the author and may not reflect the views of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided. However, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation for the exchange of products, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept liability for losses and/or damages arising from the use of this publication.
