XAU / USD jumps from $ 20 to $ 1,731 after the Fed

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  • XAU / USD appreciates $ 20 after the publication of the Fed statement to reach peaks at $ 1,731.
  • Gold prices have risen about 2.5% in the past three days.
  • Above $ 1,730, the precious metal is approaching long-term highs at $ 1,765.

XAU / USD rallied $ 20 to hit session highs in 1731 after the U.S. Federal Reserve released its monetary policy decisions and a set of optimistic economic forecasts for 2020.

The Fed anticipates a painful economic recovery

The Federal Reserve kept its benchmark interest rate unchanged at 0% -0.25% and dampened market hopes for a rapid economic recovery. The bank predicts a difficult return after the COVID-19 closes, predicting a 6.5% contraction for 2020 with an unemployment rate of 9.3% at the end of the year.

In addition, the bank has reaffirmed its commitment to keep the overnight rate of funds close to zero until at least 2022 and the pace of bond purchases at least at current levels, or $ 80 billion per month in bonds from the Treasury and $ 40 billion a month in agency-backed and mortgage-backed securities

XAU / USD nears long-term highs at $ 1,765

The precious metal is expected to end its third consecutive day in green, appreciating about 2.5% after rebounding to $ 1,670 the lowest on June 5. (June 1 high) before long-term highs at $ 1,765.

On the downside, immediate support is at the 50-day SMA level, currently at a low of $ 1,703, and below, at $ 1,692 (June 9 low) and $ 1,670 (low of June 5).

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