Gold prices have been going through some changes after the recent meeting of the US Federal Reserve, according to Joaquin Monfort, who works at FXStreet. Basically, gold prices went up by more than $30 per ounce after the Fed meeting. This happened because the Fed decided not to change interest rates and to slow down how much US Treasury stuff it’s selling. This made people who like gold (the gold bulls) happy because it showed that the Fed is being careful with its money moves.
However, Monfort also noticed that the Fed said some things that made people think they might be a bit strict about inflation (they used a “hawkish phrase”). This means they’re paying close attention to prices going up too fast. The Fed didn’t talk about lowering interest rates anymore, but they also didn’t say they’d raise them soon.
Monfort also looked at the technical stuff about gold prices. He said that based on certain measurements, gold prices have hit a point where they might start going up again after going down for a bit. This suggests that the price of gold could be on its way up.
Measured Move patterns are like a series of waves that go up and down, kind of like a zig-zag. Joaquin Monfort explained that these patterns have three waves, and the last one, called wave C, can be figured out based on how long the first wave, wave A, was. It’s usually either the same length as wave A or about 68% of its length according to something called the Fibonacci ratio.
Monfort also talked about where gold prices might go next. He said that right now, gold is in a bit of a tricky spot. If the price drops below a certain level, around $2,285, it could mean more price drops down to about $2,245. But if it goes above another level, around $2,350, it might mean things are getting better for gold, and the price could go back up to around $2,400.
Overall, Monfort thinks that the price of gold will probably go up in the medium and long term.
On Thursday, the price of gold kept going down a bit, hitting a low of $2,285.54 per ounce. At the time of writing, it was at $2,291.67, down about 1.20% for the day.
