Original title: Fear of the Fed disappointingGold is expected to soar more than $30. Gold, silver, crude oil latest operating strategies
Wednesday (July 28),Gold priceStabilize near the key level of $1,800, as investors are reluctant to bet heavily until the Fed will announce its policy decision later today.
In the US market, spot gold once hit a low of US$1,794.42, but then rebounded from the low by US$5, and is now trading slightly below US$1,800.
“Gold prices continue to dance slowly around $1,800. The market seems to be unable to find a clear direction. Investors are waiting for the Federal Open Market Committee (FOMC) meeting… The volatility is small,” said Carlo Alberto De Casa, market analyst at Kineis.
If the Fed says that the delta variant strain caused them to postpone their plan to reduce quantitative easing until next year, then this would be very optimistic for gold.
Naeem Aslam, chief market analyst at AvaTrade, said that the Fed’s position will set the tone for future volatility in gold prices. Surprisingly hawkish views will cause gold prices to plummet, but the Fed is unlikely to change its position at the moment, so gold prices are expected to remain stable. .
Foreign exchange broker Oanda pointed out that dovish Federal Reserve policy and lower bond yields may prompt gold to move towards the recent high of $1833, where the price of gold will face a 50% Fibonacci retracement test (from the June high to Low point). If the price of gold breaks through this point, you need to pay attention to the 61.8% Fibonacci retracement level, which is about $1850. The prospect of breaking through this barrier will be very optimistic. There have been a lot of discussions about debt reduction recently, but I think the final result of the meeting will be disappointing. Unless policy makers begin to question the ephemeral nature of inflation data, there is no reason to risk triggering a “cutting panic” when solid progress is made. Obviously, although debt reduction will come soon, the Fed can still proceed with caution.
FXDailyreport wrote an article to analyze and predict the trend of gold, silver, and crude oil and give an operating strategy:
Gold: stalemate around $1800
Gold prices continue to consolidate near the $1800 support level. Not as far away from this barrier as expected. Currently, traders are waiting for the Federal Reserve’s interest rate statement. After the announcement, volatility is likely to intensify, and it may rebound and close above the 200-day SMA.
Traders will monitor the price closing level this weekend. A closing price below $1780 is the main bearish confirmation, while a closing price above SMA 200 is a bullish confirmation.
Key levels of focus today:
Support: 1800, 1780, 1700, 1680
Resistance: 1850, 1900
Silver: Closed below $25.00
Yesterday we had a bearish breakout and closed below $25. It seems that the trend will turn bearish after the breakout. However, this breakthrough occurred before the Federal Reserve announced interest rates. We can consider the current breakthrough to be temporary until interest rates are announced.
If the price can close above $25 by the end of the week, then the bearish outlook will be cancelled and traders will be prepared for further upward movements.
Key levels of focus today:
Support: 25.00, 21.35, 20.00
Resistance: 26.00, 27.00, 29.00, 30.00, 31.50
Crude oil: hovering above $70.00
Oil prices return to more than $70, which is bullish for crude oil. The price is currently consolidating around $70, awaiting further bullish pressure. If oil prices can remain above US$70.00 before the end of the week, traders are expected to continue to rise to US$77.13.
Key levels of focus today:
Support: 70.00, 67.20, 65.00, 60.00
Resistance: 77.13
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