Be Watchful As FOMC Rate Decision May Bring $15+ Movement in Gold, Nov 05, 2020
U.S. FOMC Interest Rate Decision Followed By Press Conference
The most awaited event is almost here and that is U.S. Federal Funds Rate Decision and FOMC Statement. The releasing time is at 1900 GMT/0030 IST followed by FOMC Press Conference. Markets expect Federal Funds Rate to remain unchanged but high possibilities are there for additional stimulus package might be introduced by Fed Chairman Jerome Powell. On the other end, if FOMC statement remains unchanged with previous measure and forecasts, the event will not bring as volatility as expected. The upcoming FOMC statement, NFP Job data as well as Presidential Election results will decide the future path of the U.S. dollar.
Let’s see how Gold has reacted during the previous data release:
XAU/USD (Gold): Gold spikes up and hits fresh 2 – week high at $1,927 mark ahead of U.S. Interest rate decision. Today pair made intraday high at $1,927 and low at $1,902 mark. A sustained close above $1,924 requires for the upside rally. On the other side, consistent close below $1,902 will check key supports as well. Key support levels are seen around $1,894, $1,882, $1,876, $1,857, $1,849, $1,840, $1,822, $1,809 and $1,787 mark respectively. Key resistances are seen at $1,932, $1,940, $1,947, $1,957 and $1,972 marks respectively.
Take a look and do trade wisely!