After the event, the Chairman of the Federal Reserve Jerome Powell revealed at the follow up press conference that not one but three rate cuts are possible in 2024. These news caused a drop of the Dollar that continued overnight. The Dollar index reached a slow as 102.90, where it found support.
On gold charts it resulted in a surge as high as 2,222.60. However, after the event, the price declined and revealed a support zone at 2,200.00. Economic Calendar Analysis
There are no more notable events scheduled for this wek.
XAU/USD short-term forecast
A potential resumption of the surge might encounter resistance in the 2,222.60 level.
Meanwhile, a decline has to decline below the 2,200.00 mark, before approaching the 50, 100 and 200-hour simple moving averages.
XAU/USD daily charts review
On the daily candle chart, the exact 2023 high level is marked. It is the 2,146.70, where the metal found resistance before returning back below 2,000.00. Most recently, the level has turned into support, as it was forecast last week.Daily Candle Chart
Gold traders are shorting a surging commodity
Before the Federal Reserve events, 74% of Dukascopy traders were short, as that proportion of open position volume was in short positions.
In the meantime, pending orders in the 1000-pip range around the current price were 71% to buy the metal.
After the event, 71% were short and orders were 91% to buy. In general, Dukascopy traders are sitting on red positions, as they expect the price of gold to drop, but the metal just keeps going higher.