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Gold Signal - Fed Hike Too Late too Small - 22 Sep 2016

Signal details
Entry Price: 
1335
Close Price: 
1337
Direction: 
High
Expiry Time: 
20:00 GMT
Result: 
ITM
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Gold prices have been buoyed by a dovish chairman of the Federal Reserve, Janet Yellen, who spoke yesterday in the aftermath of the latest decision by the U.S. Federal Reserve to hold rates steady at 0.5 per cent. The news has been widely expected, however the precious metals market is anxious to buy gold once again. The main reason for this is that traders think that the Fed is only going to hike rates too slow.

Gold is considered a good asset when it comes to monetary value preservation. With interest rates as low as they are, the holders of gold are more benefitted if they hold the precious metal instead of relying on returns from the ultra-low interest rates which central banks globally are providing. We are looking for a dip towards the $1335 level to buy daily calls on gold prices.

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.