Yesterday the Fed (as expected) kept the interest rate unchanged (after a series of 10 increases). However, the opinion of market participants that the rate peak has been reached has been called into question. At the Jerome Powell’s press conference, it became known that:
→ the majority of FOMC members are against the rate cut;
→ there may be another increase at the end of the year;
→ high inflation situation may last 2 years.
The markets reacted with a rise in the US dollar. Accordingly, the currencies fell in pairs with the US dollar. Gold also fell in price to a minimum in 3 months — like bitcoin, by the way, and this is not the only similarity in the behavior of the price of gold and the main cryptocurrency.
Note that on the XAU/USD chart, a picture is emerging that a few days ago was formed on the bitcoin price chart (see the previous post).
The price of gold has broken through the ascending channel (shown in blue), formed a breakout test and is moving within the descending channel (shown in red). If we see a continuation of the dynamics shown by bitcoin in the gold market, then XAU/USD may drop to the lower border of the descending channel.
