The trend of gold
Market Summary:
Federal Reserve Chairman Powell reiterated that the US economy is good, but it faces some risks and has not revealed new information.
The market is also closely watching the progress of China-US trade negotiations.
The release of the FOMC minutes is failed to impress on the market.
The World Gold Council (WGC) said that global gold-backed exchange-traded products held more than the 2012 level and hit a record high in September report. ETF holdings increased by 75.2 tons in September, totalling 2,808 tons.
News details:
Powell said that the Fed would soon begin to expand its balance sheet again, which is partly a response to the turmoil in the loan market in September. In a speech in Denver, Powell delivered the method to expand its holder’s securities and will be explained in the next few days.
In terms of broader monetary policy, Powell insisted on his latest view: the British disorderly Brexit. He said that the Fed is committed to supporting the economic recovery, but gradually data, there is no default rate cut process.
Although the Fed has already cut interest rates twice this year, the US president is still dissatisfied and continues to hit the Fed and Powell. Trump posted via twitter that the Fed has no clue, but the United States is still working well.
Also, the market is closely watching the progress of China-US trade negotiations. Liu He, China’s top trade negotiator and vice-premier, travelled to Washington from October 10th to 11th to participate in the next round of trade negotiations. Good news and bad news may be mixed, but the overall will put the investor’s sentiment in a negative tone. It helps the gold volatility, and the US dollar is defensive.
Technically, the gold price is committed to the 1500 barrier. Also, it will increase to 1520 before the 1535 resistance.
