Gold prices moved sharply higher and the dollar moved lower after the Federal Reserve raised interest rates by a quarter point this week. While many experts expected three more rate hikes this year, the central bank stayed the course with its forecast for two more rate hikes. The Federal Reserve expects that labor market conditions will remain strong, but inflation has been slow to catch up with the economic growth.
Gold also experienced a boost as a safe-haven asset amid ongoing concerns over a trade war. President Trump announced $60 billion in new tariffs on Chinese imports following already announced tariffs on steel and aluminum imports earlier this month. Several industry groups warned that the move could provoke retaliation and trigger a trade war, which could put the country’s strong economic growth at risk. (See also: How Can ETF Investors Benefit From Trump’s Tariffs?)
Gold prices moved higher following the Federal Reserve’s decision to hike interest rates, but traders will be watching these key levels. …read more
Read more here: Gold Breaks Out From Trendline Resistance