{"id":152580,"date":"2019-08-01T11:22:23","date_gmt":"2019-08-01T15:22:23","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=152580"},"modified":"2019-08-01T09:03:22","modified_gmt":"2019-08-01T13:03:22","slug":"xauusd-gold-analysis-diminished-fed-easing-expectations-bearish-for-xauusd","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/08\/xauusd-gold-analysis-diminished-fed-easing-expectations-bearish-for-xauusd\/","title":{"rendered":"XAUUSD Gold Analysis: Diminished Fed easing expectations bearish for XAUUSD"},"content":{"rendered":"
August 1, 2019<\/div>
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By IFCMarkets<\/a><\/strong><\/p>\n

Diminished Fed easing expectations bearish for XAUUSD<\/strong><\/p>\n

Federal Reserve indicated a 25 basis point rate cut yesterday was not the start of a lengthy easing cycle. Will the XAUSUSD<\/a> continue retracing lower?<\/p><\/blockquote>\n

Central banks continuing purchases of gold are a major support for gold prices. Russia\u2019s central bank led gold purchases by central banks in 2018, acquiring 274.3 metric tons to reduce reliance on the U.S. dollar. Other big buyers included Turkey, Kazakhstan, India, Iraq, Poland, and Hungary. In first-quarter this year gold purchases by central banks, led by Russia and China, were the highest in six years as countries diversify their assets away from the U.S. dollar. Global gold reserves rose 145.5 tons in Q1, a 68 percent increase from a year earlier, according to World Gold Council. Central banks bought 651.5 tons in 2018, versus 375 tons in 2017. That\u2019s the largest net purchase of gold since 1967. However as the Federal Reserve cut interest rates on July 31, 2019 for the first time in ten years, Fed Chairman Jerome Powell said \u201cIt\u2019s not the beginning of a long series of rate cuts,\u201d while adding \u201cI didn\u2019t say it\u2019s just one rate cut.\u201d And President Trump said it was not \u201c the beginning of a lengthy and aggressive rate-cutting cycle\u201d that markets \u201cwanted to hear.\u201d Slower than expected pace of Fed monetary easing is bearish for gold prices.<\/p>\n

\"XAUUSD<\/p>\n

On the 4-hour timeframe the XAUUSD:H4<\/b> is retracing lower after breaching the support line, and is testing the 200-period Moving Average MA(200). These are bearish.<\/p>\n