Gold prices will remain stable in US trading early Wednesday afternoon, supported by the conclusion of the US Federal Reserve (FED) meeting. Gold prices fell modestly just before the FOMC statement was released. So, what levels will gold prices see now?
Jim Wyckoff hits critical levels for gold
Global stock markets plunged mostly overnight. U.S. stock indices are higher in afternoon trading. The European Union has proposed a phasing out ban on Russian crude oil imports, causing crude oil prices to rise sharply in the middle of the week. Technically, gold futures for June delivery are seeing a three-week price downtrend on the daily bar chart.
Renowned analyst Jim Wyckoff thinks bears generally have a short-term technical advantage. The bulls’ next upside price target is to produce a close above the solid resistance at last week’s high at $1,935.50. The bears’ next short-term bearish price target is to push futures prices below solid technical support at $1,800. Initial resistance is seen at $1,883, followed by $1,900. Initial support is seen at this week’s low at $1,849.70 followed by $1,835.
The price of gold rose after the FED’s meeting
Meanwhile, as we reported on Kriptokoin.com , gold prices rose on Thursday, Fed Chairman Jerome It rose more than 1 percent after Powell rejected aggressive rate hikes for the year as the U.S. central bank tried to contain inflation without triggering an economic recession.
Senior market analyst at trading company City Index, Matt Simpson, said market participants ended their expectation of a hard monetary policy, that this was a catalyst for the rise of gold and that the US Federal Reserve (FED) He said that there is a possibility of inflation leaking as the ) did not fight as hard as expected. “Having the Fed behind us allows gold to shine again in the risky environment also known as the Ukraine-Russia conflict,” Simpson said.
