Yesterday, the price of gold was declining as the USD gained support from the results of the Fed meeting. Interest rates were kept at the same level, but the Regulator stated that the situation in the labor market and the level of inflation are to be considered when a rate hike decision is to be made. As a result, the odds of a rate hike in December have grown from 30% to 50%.
Expectations were strengthened by recent macroeconomic statistics, released in the US. Third quarter GDP growth indicator came in at 1.5% that is slightly below the forecasted 1.6%. Initial Jobless Claims grew by 260 K against the forecast of 263 K.
Rate hike expectations negatively affect commodity assets as their attractiveness against earning assets is lowering when interest rates are raised.
Support and resistance
On the 4-hour chart, MACD is near its zero line, while Stochastic is moving down.
Support levels: 1144.53, 1140.00, 1133.00.
Resistance levels: 1144.53, 1140.00 ,1133.00.
Short positions can be opened from the level of 1144.00 with targets at 1140.00, 1135.00 and stop-loss at 1146.00.
Long positions can be opened from the level of 1151.00 with targets at 1155.00, 1160.00 and stop-loss at 1149.00.