Gold establishes above $1500 on global easing trend; all eyes are on Fed
Spot gold is holding above $1500 barrier on Friday, as the price returned above this level after two weeks in Thursday’s strong rally (up 0.8% for the day).
The yellow metal’s price holds in green for the fourth straight day, inflated by global rate cut trend, with the latest rate cuts from the central banks of Indonesia and Turkey, sparking an acceleration of metal’s price on Thursday.
Gold price is on track for strong weekly gains, with additional positive signal expected on weekly close above $1500 mark.
Fed’s policy meeting next week will key event, with wide expectations for another rate cut that underpins metal’s price.
If the US central bank reduces interest rate next week (for the third consecutive time) gold price would likely accelerate higher and attack key barriers at $1511/19 (daily cloud top / Fibo 61.8% of $1557/$1459 descend).
Broken $1500 level, reinforced by 30DMA ($1498) is expected to hold and keep bulls intact.
Res: 1506; 1508; 1511; 1516
Sup: 1500; 1498; 1493; 1487