Federal Reserve Cuts Rate for the First Time in a Decade | The Gold Forecast

Federal Reserve Cuts Rate for the First Time in a Decade

July 31, 2019 - 5:50pm

 by Gary Wagner

Gary S. Wagner - Executive Producer

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Gold Forecast: Proper Action

This afternoon we sent out a Trade Alert to Buy Oct gold at the market

This was based upon the quick recovery after selling off following the rate cut announcement. 

Maintain long October gold at  $1439 to 1441.00  (symbol GCV19)

Maintain Stop at 1413.13, Look to add to position once gold returns to rally mode. 

Gold Market Forecast

While it was the initial and quick recovery of gold pricing within 15 minutes of the rate cut announcement that prompted us to issue a buy recommendation the recovery was short-lived. In hindsight we entered this position too early inasmuch as we could’ve gotten a much more beneficial entry price, my long-term outlook is bullish. That being said if we see the market recover as I believe it will we will look to add to this position to dollar cost average our entry price.

Sentiment Indicator:
Gold -> Bullish
Silver -> Neutral
S&P 500 -> Neutral
Bitcoin -> Neutral
Bitcoin fundamentals by Joseph M. Wagner II:

The Fed’s decision today to lower interest rates by 0.25% definitely had a negative impact on U.S. equities as well as safe haven assets, was some of this money leaving these markets what brought money and traders into Bitcoin?

If you look at a short term chart over the last 24 hours in the cash market we can see that most of the gains were actually achieved overnight and were not correlated with the drop in interest rates. Currently as of 4:00 PM EDT Bitcoin and Bitcoin futures are trading up approximately 4%, at $10,000 in the cash markets and $10,120 in CME futures. Today’s gains took pricing above both the 10 and 50 day moving averages giving BTC a more bullish outlook.