Will GOLD fall when interest rates fall? What's the catch? GOLD is testing support ahead of important news. But given the fact that the price broke a strong uptrend line earlier, we can assume that the market is expecting to hear a negative tone in the Fed Chair's words at the US interest rate meeting later today.
Scenario: the price broke the ascending support and essentially entered the sell-off zone. A local support level of 2633 is also forming on the chart. If the price manages to break this area, this fact will signal the readiness to decline.
News: markets are waiting for the interest rate to be reduced by 0.25%. The chance is very high. But even against the background of rumors, the price of gold is growing, and the dollar is falling. Traders are afraid to hear hawkish hints from Powell's mouth, who may announce a possible halt of the rate cut cycle, which will make the dollar more expensive....
