Following today’s FOMC meeting gold prices exploded and stopped just shy of $1400, as the world digested the increasing ‘easiness’ of central banks policies.
The Fed had confirmed their dovish stance nearer the end of the US session, with nearly half of the voting FOMC members expect two cuts this year. Shortly after, RBA’s Philip Lowe hit the wires to hammer home their dovish views and all but confirm another cut is on the horizon. And, let’s not forget that RBA teased the notion of QE in June’s minutes, adding that “Lower interest rates were not the only policy option available to assist in lowering the rate of unemployment”. Not wanting to miss out, BOJ reiterated their ultra-easy policy and expect to keep ‘extremely low rates at least through spring 2020’. Given the backdrop of trade wars and deteriorating economic data, the pressure if building for BOJ to stimulate the economy further. And, of course this is after Draghi shot down the Euro with potential for ECB to ease further, earlier this week.
With an increasingly bullish trend structure on the monthly charts, we remain bullish after prices have had a chance to pause for breath.
City Index: Spread Betting, CFD and Forex Trading on 12,000+ global markets including Indices, Shares, Forex and Bitcoin.Click here to find out more..
This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.
From the news and opinion pieces on pages like this to
share discussion forums,
charting tools,
financials,
live share prices and
Level 2,
order book data
If you trade or invest ADVFN has the tools you need to make the right decisions.