Gold Awaits Fed Decision
2022.10.25 05:58
The Troy ounce of on Monday costs about 1660.00 USD. Gold still has an inverted correlation with the USD. Previously, the quotes recovered after the US currency weakened with growing interest in risk.
Attention will be focused on the US Fed’s . The market discusses the probability of growth by 75 base points at once. The growth of the rate makes ownership of the precious metal more expensive because it does not generate income.
Curiously, the “physical” demand for gold is growing. This is seen in India: the demand is so strong that it smoothes out the outflow of finance from gold ETFs.
On H4, completed a wave of decline to 1616.16. At some point, the market performed an impulse of growth to 1661.00 and is consolidating around this level today.
An escape from this range upwards is not excluded, followed by a further correction to 1690.00 and a decline to 1592.00. Technically, the scenario is confirmed by the MACD.
Its signal line is under zero, heading strictly up. A pathway to new highs will open if the zero line is broken.
On H1, the pair demonstrated an impulse of growth to 1652.77, forming a consolidation range around this level today. With an escape upwards, a pathway to 1690.00 will open. With an escape downwards, a new wave of decline to 1600.00 will become possible.
Technically the scenario is confirmed by the Stochastic. Its signal line has broken through 20 upwards and continues growing to 50. If the line is broken away upwards, a pathway to 80 will open. If the pair bounces off 50 downwards, a new decline structure to 20 will open.
Disclaimer: Any forecasts contained herein are based on the author’s particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.
