With gold falling $40 yesterday traders were presented with the opportunity to make 100% on capital.
“Gold’s great week is ending on a down note, but bullion bulls are probably feeling pretty optimistic,” said Ed Moya, head of research for the Americas at New York’s OANDA. “Gold appears to be close to triggering technical buying following the aftermath of the Fed, persistent delta variant concerns, and depressed global bond yields.”
After two weeks of anemic action, gold longs got a break on Wednesday when Federal Reserve Chair Jerome Powell said the central bank wasn’t ready to even think of raising U.S. interest rates as it was still focused on buying assets to support an economy recovering from the coronavirus pandemic.
By Barani Krishnan
Jul 28 Fed Interest rate decision is again to hold at .25% despite inflation storm clouds. On the flip side housing has falling prices so imagine what impact rising rates would have for that market. Stuck between a rock and hard place and in the next few months the bond market might take control and force rates higher which will create fear and worry in the broader economy and with investors. And we all know Gold loves fear and good fundamentals to increase in value. GDP release tonight so hold on to your cowboy hat.