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Gold Remains Almost Unchanged Despite Lower Than Expected U.S. Retail Sales Data, Traders Eye FOMC Statement for the Further Directions; Dec 15, 2021

U.S. FOMC Funds Rate Decision and Press Conference

The Judgement time has almost arrived. Today U.S. will come up with the Funds Rate Decision at 1900 GMT/0030 IST followed by FOMC Press Conference at 1930 GMT/0100 IST. Short term interest rates are the paramount factor in currency valuation – traders look at most other indicators merely to predict how rates will change in the future. FOMC members vote on where to set the target rate. The individual votes are published in the FOMC statement. FOMC Statement contains the outcome of their vote on interest rates and other policy measures, along with commentary about the economic conditions that influenced their votes.

As expected by traders, the Interest Rate will remain unchanged in today’s meet. Just before FOMC Rate Decision, U.S. Released Retail sales & Core Retail Sales data with Negative numbers. Consumer spending and Sales play a very important role in Fed policy decision and as data suggest, slowdown in spending amidst an Omicron fear could ease expectations for faster tightening next year.

The investors are looking for the following answers from the Fed Chair Powell during his Press Conference.

  1. The Amount of Taper per month by Fed Officials
  2. Expected Interest Rate Hike During 2022
  3. Inflation, GDP and Employment Forecast for the upcoming year

Let’s wait and watch the tone of the Fed Governor. Does he convey the hawkish message or dovish to the market?

Let’s see how gold has reacted during the previous data release:

Nov 03:

Sept 22:

Technical View:

XAU/USD (Gold):

  • The Gold ignored the negative retail sales data and remains well supported around $1,770 mark.
  • Today pair made intraday high at $1,773 and low at $1,766 mark.
  • A day chart and H1 chart with triple EMA suggest down trend for the time being.
  • A sustained close above $1,776 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,767 will check further supports.
SUPPORTS RESISTANCES
$1,764 $1,776
$1,757 $1,782
$1,752 $1,789
$1,747 $1,794
$1,742 $1,804

 

Take a look and do trade wisely!
Good Luck

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