Powell Speech: Interest rates are lower than in the past and likely to remain so!
By: Ahura Chalki
As the market was expecting another big move in the Gold price after Powell speech, it happened and Gold lost all gains of the past two days and now trading $1406. Rate cute hope which was the most reason for weaker USD and raising the Gold price, after his speech became dimmer, at least in the short term. Trump administration believes it is time to lower the rates since it was raising before so fast, which is not what Mr. Powell and FED members believe in that, as he mentioned yesterday in his speech that ” Interest rates are lower than in the past and likely to remain so!”. On the other hand, totally almost 90 USD gain in less than a week for Gold, need correction and now it has the accepted excuse for that.
From the technical side, indicators in the H1 chart still remain bearish. RSI moves under 50-level and it is not in the oversold area, even if it close to 30-level. Stochastic in newly downtrend move has correction sign and reversal, at least for the short term.
Pivot point: 1424.22
Resistance levels: 1436.79 / 1451.72
Support levels: 1409.30 / 1396.72
The expected trading range for today is between 1396.72 support and 1436.79 resistance.
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