Gold rises after Fed stands pat on rates

By FXStreet FXStreet (Córdoba) – Spot gold got a nice boost from the FED, rising up to a daily high of $ 1,135.74 a troy ounce, its highest since September 2, after US policymakers voted to keep the federal funds rates unchanged.

The bright metal closed the day around $ 1,132.00 a troy ounce, as the US Central Bank decision took out some of the pressure over the commodity.

Gold technical view

“Nevertheless, the recovery stalled short from confirming a longer term advance, although the daily chart shows that the price has managed to advance beyond its 20 SMA, whilst the RSI indicator heads higher around 56. In the same chart however, the 100 DMA maintains a strong bearish slope above the current level, providing a strong dynamic resistance now around 1,143.50, while the Momentum indicator heads higher below the 100 level”, says Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price has extended above a now bullish 20 SMA, whilst the technical indicators have lost their upward strength near overbought levels. The immediate support is now around 1,126.60, September 8 daily high, with a break below it pointing for a continued decline towards the 1,110 region”.

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Source:: FX Street