Gold price needs extra impetus to reach $1,360 an ounce

New York (Feb 1)  The outcome of Wednesday’s Federal Open Market Committee meeting was supportive for gold but another impetus may be needed for the market to climb to $1,360 an ounce, said TD Securities.

 Fed Chair Jerome Powell surprised the market with a fairly dovish press conference in which signaled that the case for further gradual rate hikes has decreased, while the normalization of the balance sheet will happen sooner and with a larger balance sheet than in previous estimates.

 TDs said it now sees the balance sheet run-off concluding in June and only one rate hike in 2019. This offers firm support for gold in the low $1,300s, but we think further weakness across equities, U.S. economic data, and the US dollar will be needed before a true breakout toward the next Commodity Trading Adviser trigger of $1360 an ounce, the bank added.

ScrapRegister

Silver Phoenix Twitter                 Silver Phoenix on Facebook