As we wrote in our last report the gold price would benefit on the back of a dovish speech from the US Federal Reserve and has now broken through the critical resistance level of $1,260, hitting a 6 week high which as we predicted has now become the new support level over the last 2 trading sessions.
With the possibility that the Fed won’t deliver any more rate hikes this year, the precious metal looks set to benefit for the foreseeable future unless some super economic data from the US is released to the market which may put an interest rate hike back on the table.
Gold will probably test this support level over the next few trading sessions before continuing to climb towards the next resistance level of $1,265, which was formally a support level 2 months ago.
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