gold 2590 vs 50bps cut
gold price were range bound in $60 price area but suddenly it breakout on wsj and ft news article on 50bps first cut size possibility.
after years of ZIRP and QE big size cut can spark second inflation wave risk
since usa economy has not reached into deflation like china
this year alone fed has ignored second inflation wave risk two times
first in march by saying January effect and inflation bump and second times in Jackson hole speech
if fed start cutting rate while ignoring second inflation wave risk is the reason gold breakout the range and trading near $2590
on this h4 time frame - there are two support
yellow line dynamic support
$2530 static horizontal support
if final message of speech stay dovish than gold will stay above $2590
if hawkish then price will retrace back to $2530
after years of ZIRP and QE big size cut can spark second inflation wave risk
since usa economy has not reached into deflation like china
this year alone fed has ignored second inflation wave risk two times
first in march by saying January effect and inflation bump and second times in Jackson hole speech
if fed start cutting rate while ignoring second inflation wave risk is the reason gold breakout the range and trading near $2590
on this h4 time frame - there are two support
yellow line dynamic support
$2530 static horizontal support
if final message of speech stay dovish than gold will stay above $2590
if hawkish then price will retrace back to $2530
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.