Gold benefits as Powell acknowledges disinflation process
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Gold has charted the next higher trough, followed by a higher peak in its uptrend. Current levels were last seen in April 2022.
The precious metal is moving as Fed Chair Powell did little to push back on market sentiment at yesterday's press conference. Powell acknowledged that the disinflation process has started. Yields and the dollar fell and gold is benefitting from the lower greenback.
The gold price jumped yesterday, closing above Tuesday high (green horizontal). This locked in the higher trough. Overnight price action charted the higher peak. The RSI is not overbought, and the current impulse may still have legs.
Russell Shor
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.
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