June 16, 2021, | AtoZ Markets – Precious metals are spending the month of June with a very volatile chart. The price of gold and silver, which spent the month of May with the rise with the trend they caught, were locked in the FOMC meeting today. Before the meeting, gold is at $1,860 an ounce, while silver is trading at $27.75.
Gold price may rise after FED meeting
James Hyerczyk, one of the precious metals market analysts, published his gold price analysis that he wrote during the day. Hyerczyk stated that precious metals may have been priced with expectations before the Federal Reserve meeting and that prices could rise in a possible scenario. Stating that the level of $1,865 is very important and critical for the yellow metal, the experienced analyst stated that if this level is maintained, the levels of $1,900 can be caught again:
“Given the hard selling this week, the downtrend may have been priced in in the gold market so far. Therefore, investors should be prepared for a possible counter move. However, if the Fed announces more than investors expect, prices could fall sharply. A sustained move below $1,865 will indicate the presence of sellers. The first target on the downside is this week's low of $1,845. A persistent move above this level will indicate the presence of buyers. The first resistance on the upside is the $1,882 level. If this level is exceeded, the $1,899 resistance will be tested.”
The Fate of Gold is in the Hands of Jerome Powell
James Hyerczyk, a senior market analyst, shared his current precious metal analysis. Hyerczyk stated that the next move of an ounce of gold is in the hands of Fed Chairman Jerome Powell and his view of the economy. Stating that in the scenario where the expected hawkish attitude is not exhibited in some circles, gold price may rise, the experienced analyst said that the $1880 level can be reached in this process:
“On the four-hour chart, gold price drew a bearish pennant ahead of the FOMC meeting. This is a bearish pattern so the trend remains bearish for gold traders. A sustained break below the ascending trendline at $1,854 would confirm the downtrend. However, a move above the falling trendline resistance at $1,866 will invalidate the bearish formation. Also, if the FOMC disappoints the hawks, the gold price may return to the previous daily support at $1,879 an ounce.”
Read also: Gold Bulls Holding the Bias Over $1,850 Area - Will Climb Upside?
Initial price target for Silver $28
On the silver side, the pre-meeting level of $27.60 was maintained. The $28 level will still be of great importance for the precious metal, which has made many attempts to stay above the $28 level in June. Experts state that in the scenario where there is a positive statement in terms of precious metals from the meeting, the gray metal may retry the $28 level.
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