February 02, 2023 04:03 GMT
Bullion Holds Onto Its Gains Post The Fed
Gold prices bounced after the Fed announced a 25bp hike and Chairman Powell commented that disinflation had begun. They rose 1.2% to finish the NY session at $1950.52/oz, as the USD DXY index was 0.9% lower. They have traded sideways during the APAC session close and are up 0.1% to around $1952.15 after reaching a low of $1950.47 followed by a high of $1957.33. Gold is at its highest since mid-April 2022. DXY is down a further 0.3%.
- Gold prices have remained above the bull trigger of $1949.20, the January 26 high. The next level to watch is $1963, 76.4% retracement of the March – September 2022 bear leg. Bullion is trading well above its 50-day simple MA, which is itself now above both the 100- and 200-day MA.
- Later the ECB and Bank of England meet and both central banks are expected to hike rates 50bp. In the US, Challenger job cuts for January, jobless claims and Q4 preliminary unit labour cost data are scheduled.