GOLD ATTEMPTS TO BREAK ABOVE 50-DAY SMA AFTER POWELL SPEECH
- Gold is breaking above the 50-day SMA following a dovish speech by Fed Chairman Jerome Powell.
- Multiple geopolitical factors suggest a broadly bullish backdrop for the precious metal.
- XAU/USD trades above $2,340, increasing bullish bets of a recovery in the short term.
Gold (XAU/USD) rallies into the $2,340s on Wednesday as investors continue to digest the contents of Federal Reserve (Fed) Chairman Jerome Powell’s speech from Tuesday and the shift in monetary-policy stance that his words reflected.
Additionally, “bargain hunting” by longer-term investors may further support Gold, as they accumulate before another rally due to multiple global factors that continue to favor the precious metal over the long term.
Gold is attempting to penetrate the important 50-day Simple Moving Average (SMA), which has been capping its gains for several days. A bullish close on Wednesday would signal a fresh upside for the yellow metal
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