{"id":15069,"date":"2024-09-20T07:45:49","date_gmt":"2024-09-20T07:45:49","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=15069"},"modified":"2024-09-20T07:45:49","modified_gmt":"2024-09-20T07:45:49","slug":"gold-steady-at-record-levels-on-central-bank-moves","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/gold-steady-at-record-levels-on-central-bank-moves\/","title":{"rendered":"Gold steady at record levels on central bank moves"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Key points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Gold prices maintained near record highs, trading around $2,590 per ounce.<\/li>\n\n\n\n<li>Central banks, including the Fed, PBoC, and BoE, are shaping the outlook for monetary policy, impacting the appeal of gold in the eyes of investors.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p class=\"wp-block-paragraph\">Gold prices remained around the $2,600 per ounce mark on Friday, hovering at all-time highs as markets continue to digest key decisions from central banks. <\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/09\/20240920-154156-1024x468.jpg\" alt=\"On the XAUUSD daily chart at vtmarkets.com, the price has consistently held above the 72-day exponential moving average (EMA), indicating sustained upward momentum. The MACD line has crossed above the signal line, further confirming the strength of the ongoing rally. With the price comfortably above both the 24- and 72-period EMAs, the chart suggests that the bullish trend may continue in the near term.\" class=\"wp-image-15070\" style=\"width:1450px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><em>Picture: XAUUSD prices maintained near record highs, as observed on the<a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\"> VT Markets app<\/a>.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On the charts, we see that gold (XAUUSD) has maintained its bullish momentum, closing at $2,606.79, near its daily high of $2,609.77. The precious metal continues to gain strength as economic uncertainties persist, pushing traders toward safe-haven assets.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On the daily chart, the price has consistently held above the 72-day exponential moving average (EMA), signalling sustained upward momentum. The MACD line has also crossed above the signal line, confirming the strength of the current rally. The price remains comfortably above both the 24- and 72-period EMAs, suggesting a continuation of the trend in the near term.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Key resistance now lies at the $2,610 level, and a breakout could see prices push towards new highs. Conversely, support is expected around the $2,580 level, where the EMA offers a cushion for potential pullbacks.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Monetary policy and the impact on gold prices<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The Federal Reserve&#8217;s decision to cut interest rates by 50 basis points on Wednesday marked its first rate reduction since early 2020. This move, aimed at cushioning the U.S. economy, has sparked a rally in gold, as the lower opportunity cost of holding non-yielding assets like gold typically drives demand higher. Additionally, Fed officials indicated another half-percentage-point reduction by the end of the year, reinforcing the bullish outlook for the precious metal.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Gold rose toward a record after the Federal Reserve kicked off an easing cycle with a 50-basis-point cut <a href=\"https:\/\/t.co\/gMjbzxL18w\">https:\/\/t.co\/gMjbzxL18w<\/a><\/p>&mdash; Bloomberg Markets (@markets) <a href=\"https:\/\/twitter.com\/markets\/status\/1836789038621036966?ref_src=twsrc%5Etfw\">September 19, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">China\u2019s People&#8217;s Bank of China (PBoC) also kept its benchmark lending rates unchanged, a move that surprised many investors. Meanwhile, the Bank of England (BoE) decided to maintain its key interest rate at 5%, signalling a cautious approach to monetary policy. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These developments across major central banks highlight the global trend toward more accommodative policies, which is likely to keep the bullish sentiment in gold intact.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Outlook for gold traders<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The continued monetary easing by the Fed could further support such a bullish trend of gold. However, any unexpected hawkish shifts in central bank policy may lead to increased volatility. Traders may consider adjusting <a href=\"https:\/\/www.vtmarkets.com\/tools\/education\/trading-guides\/how-to-trade-gold\/\">gold trading strategy<\/a> by positioning for potential upside while remaining cautious about potential retracements triggered by sudden market shifts.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a><\/strong><strong> and<\/strong><strong><a href=\"https:\/\/myaccount.vtmarkets.com\/login\"> start trading<\/a><\/strong><strong> now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gold prices hold steady near record levels as central bank policies support its safe-haven appeal. Learn how these factors shape market dynamics. -vtmarkets.com<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[7,46],"class_list":["post-15069","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-gold","tag-precious-metals"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15069","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=15069"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15069\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=15069"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=15069"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=15069"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}