The Fed decision was widely expected. Overall signs of improvement in the US economy suggest that Fed officials will stay on track to cut monthly purchases of Treasuries and mortgaged backed securities by USD $5billion each. On Wednesday the Fed trimmed another $10 billion, now it comes to $65 billion inFebruary consisting of $30 billion of mortgage-backed securities and $35billion of Treasuries. Gold showing strong upwards momentum due to emerging markets concerns and India, Turkey and South Africa hiked interest rate which makes traders shift to safe heaven asset.
In the technical front yellow metal is trading above the falling trend line – above 21DEMA and making support at the level $1,248 these are the bull factors. Oscillators gave a sell signal in the daily chart and hourly chart as well these are the bearish factors. We recommend sell on every raise.
Intraday Support- $1,261, $1,256 $1,248
Resistance- $1,270, $1,279
The material has been provided by InstaForex Company – www.instaforex.com
The Fed decision was widely expected. Overall signs of
improvement in the US economy suggest that Fed officials will stay on track to cut monthly
purchases of Treasuries and mortgaged backed securities by USD $5billion each. On
Wednesday the Fed trimmed another $10 billion, now it comes to $65 billion inFebruary consisting of $30 billion of mortgage-backed securities and $35billion
of Treasuries. Gold showing strong upwards momentum due to emerging markets
concerns and India, Turkey and South
Africa hiked interest rate which makes traders shift to safe heaven asset.
In the technical front yellow metal is trading above the falling
trend line – above 21DEMA and making support at the level $1,248
these are the bull factors. Oscillators gave a sell signal in the daily chart
and hourly chart as well these are the bearish factors. We recommend sell on
every raise.
Intraday Support- $1,261, $1,256 $1,248
Resistance- $1,270, $1,279
The material has been provided by InstaForex Company – www.instaforex.com
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