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Gold prices edged lower following the decision by the Federal Reserve to keep interest rates unchanged. Their move was widely expected. The Fed said there was progress but seem to be willing to use the spread of the delta variant to keep rates unchanged. U.S. Yields moved slightly higher, which helped buoy the greenback, which in turn paved the way for lower gold prices.
Gold prices moved lower on Wednesday following the Fed decision to keep rates unchanged. Support is seen near an upward sloping trend line that connects the lows in March to the lows in June and comes in near 1,776. Resistance is seen near the 10-day moving average at 1,807. Prices are oversold. The fast stochastic is printing a reading of 18, below the oversold trigger level of 20. Medium-term momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. The MACD histogram also generated a crossover sell signal pushing through the zero-index with a declining trajectory which points to lower prices.
The Fed Keeps Rates Unchanged
The Federal Reserve kept short-term interest rates unchanged at its monetary policy committee meeting. The central bank held its benchmark interest rate near zero and said the economy continues to progress despite spreading the delta variant of the COVID virus. Along with that, the committee reiterated its view that the economy continues to strengthen. The statement acknowledged that the economy had progressed toward the Fed’s goals, though it will continue its monthly bond purchases. The Fed appears to be using the delta variant as a way of keeping their policy very accommodative.
This article was originally posted on FX Empire