The overnight’s session was full of surprises firstly; the market bulls managed to crack the $1,515 trigger point, which confirmed the posted bullish outside range that ignited renewed demand and elevated spot gold to its objective of $1,555-65, after posting an intraday high of $1,567, around the close of New York.
Then, to the market surprise, the U.S. Federal Reserve unleashed its own set of new and extensive measures to help keep corporate credit flows and other critical parts of financial markets functioning smoothly.
The U.S. Fed said it would purchase Treasuries and mortgage-backed securities “in the amounts needed to support smooth market functioning,” showing the central bank is willing to go far beyond the $700 billion in new purchases announced last week.
Meanwhile, the US Dollar index dropped away from the three-year highs of 103.83. With the upside objective reached at $1,555-65, now gives a neutral outlook.
Therefore, it is now time to re-evaluate.