- Gold is having a good session up 0.60% on Wednesday.
- The levels on the graph are those relevant to the subsequent FOMC meeting.
1 hour gold chart
Today the market will receive the latest news from the US Federal Reserve. There shouldn’t be a change in the main interest rate, but at the (virtual) Jackson Hole meeting there were some policy changes. The Fed has now gone from an inflation target of 2% to an average target of 2%, meaning it is ready to accept an overshoot. They are also targeting full employment and now traders and investors will be looking for more information on these changes.
The technicalities look positive at the moment with the market making higher highs and lows on the hourly chart. Very light pink lines show a corner converging upwards and trend lines could provide support or resistance. The main level of the chart is the red line at $ 1950.00 per troy ounce. The green line is the next resistance and it is at $ 1,972.75 per time and beyond the psychological level of $ 2k is also close.
On the downside, there is a black trendline that could be retested after a recent breakout. The main lower on the chart is the consolidation at the orange line at $ 1,911.00 per ounce. On the higher time frames, it has been tested several times.
Remember that gold has been in an uptrend for quite some time. If the dollar weakens after the FOMC, that would be the perfect excuse for the yellow metal to rally again and the trend to continue. If the greenback strengthens, it might cause me more side pain to come.