Sasha Singh
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Gold Might Not be a Good Investment Now

XAUUSD : 4 Hour Chart

Gold declined yesterday after the Fed monetary policy statement breaking below the key support at 1231.96 but continue to follow the downward sloping channel trend. Fed continues to hold the benchmark interest rate unchanged at .00-.25% and said that it would likely close its monthly bond-buying program in October. The central bank was buying $25 billion in treasury debt and mortgage backed securities monthly to stimulate the economy. However it decided it reduce the stimulus to $15 billion and most likely close it in October meeting. I think Gold will be declining to multi year lows when the Fed will wind up the stimulus program in the next monetary policy meeting.

The moving averages are heading in the same downward direction and are moving apart signaling that the pair will continue to follow the downtrend.

XAUUSD : Daily Chart

On the daily chart, the commodity is testing the key support at 1213.96 from which it might rise a little but as the bearish trend continues to dominate and a falling channel trend, it will find resistance from the falling trend line of the channel and decline. The next support level it may find is at 1191.24.