Gold hit two week high above $1980 per ounce as the Federal Reserve kept rates unchanged Wednesday, and reiterated that monetary policy would remain accommodative for a prolonged period to support the economy’s ongoing recovery. However, the metal flipped back on corrective selling and currently trades at $1946 per ounce, down 1.22% on the day.
Meanwhile, Organisation for Economic Cooperation and Development or OECD has raised its global economic forecast for 2020 as output picked up swiftly following the easing of confinement measures and the initial re-opening of businesses. According to the interim economic outlook report, released Wednesday, the global economy will likely contract 4.5% in 2020 instead of 6% drop fall estimated in June. Output picked up swiftly following the easing of confinement measures and the initial re-opening of businesses but the pace of the global recovery has lost some momentum over the summer months. This rebound in economy is likely to keep safe haven demand for Gold under check.
Gold rose on Wednesday in the run-up to a U.S. Federal Reserve policy decision, which is expected to reiterate a dovish monetary policy stance to support the economy’s recovery from the coronavirus crisis. Spot gold rose 0.3% to $1,960.60 per ounce, after hitting its highest since Sept. 2 at $1,973.16. Later in the day the Fed will conclude its first meeting since adopting a more accommodative approach to inflation and pledging to keep interest rates low for longer. U.S. House of Representatives Speaker Nancy Pelosi said Democrats were open to delaying an October recess to get a deal with Republicans on a new coronavirus aid bill. Japan’s exports slumped 14.8% in August from a year earlier, down for the 21st straight month, data showed, underlining the COVID-19 pandemic’s heavy hit to global demand. Silver eased 0.2% to $27.19 per ounce.
TREND : WEAK BEARISH
Time : 17/09/2020
Pivot : 1949.42
Technical View : LONG ABOVE 1956.71
Target : 1963.01, 1986.17, 1998.77
Technical View : SHORT BELOW 1938.12
Target : 1926.83, 1914.33, 1891.06