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The gold could be boosted by lower interest rate outlook in US

Discussion in 'Current Market Sentiments' started by fx-recommends, Jan 26, 2016.

  1. fx-recommends

    fx-recommends Content Contributor

    Aug 6, 2008
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    XAUUSD Daily 27-01-2016 04-59-24 ص.jpg
    The gold could be underpinned for another day ahead of the FOMC meeting outcome today which is expected show increasing worries about the global economic slowdown to hint holding of the interest rate with no hike in the first quarter of this year, while the doubts about the US manufacturing sector ability to expand this harsh winter are rising.

    Yesterday auction of UST 2YR issuance could highlight this current lower prospects of watching higher interest rate in US, as it ended to 0.86% yield, after ending the previous auction on it on 1.056% yield on last Dec. 28 following last FOMC meeting when the Fed decided to raise its funds rate by 0.25% expecting reaching 1.375% at the end of 2016.

    The gold could keep its bullish tone this week to be traded now above $1120 for the first time since last Nov. 4, despite the improving of US equities market amid oil prices rebound, upbeating Q4 earning reports and higher than expected US consumer confidence in January reached 98.1, while the consensus was referring to 96.6 after 96.3 in December.

    The gold could find more demand, after getting over its daily SMA100 following surpassing $1112.75 which has been its highest reached level since last Nov. 4.

    The gold could gather momentum, after holding above $1071.22 which could help the gold to bounce up again above its daily SMA50 forming a floor above $1057.98 which drove the gold to start being above its daily Parabolic SAR (step 0.02, maximum 0.2) for 18 consecutive days reading today $1091.15.

    XAUUSD daily RSI-14 is referring now to existence in its neutral area reading now 65.141, while its daily Stochastic Oscillator (5, 3, 3) which is more sensitive to the volatility could have now its main line in the overbought area above 80 reading 92.548 leading to the upside its signal line which is now also in the overbought area reading 82.631.

    Important levels: Daily SMA50 @ $1078.54, Daily SMA100 @ $1105.67 and Daily SMA200 @ $1132.27


    S1: $1071.22
    S2: $1057.98
    S3: $1046.08
    R1: $1123
    R2: $1138.05
    R3: $1149.84

    Have a good day

    Walid Salah El din
    Senior Market Analyst
    Skype : chief.economist.walid

    Tel: UK. +44 1138590277
    Mob: EGY. +20 1224659143

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