Gold just received a huge boost

Open demo account
FOREX trading implies serious risk and can result in the loss of your invested capital

Financial and commodity markets analytics

After falling heavily for the last 2 weeks it appears gold may have found a temporary bottom and some news released from the US earlier today may be the catalyst for the precious metal to climb higher.

In a stunning upset, Republican candidate Roy More lost the once super safe senate seat in Alabama to democratic candidate Doug Jones which now throws into question the ability for US Donald Trump’s tax policy to be signed into law.

The Republicans can now only afford to lose 1 vote when the final ballot comes for tax reform and at this time ,there are 2 candidates who have reservations about voting for the tax bill unless some serious changes are made.

Gold has suffered immensely on the back of the proposed tax reform as it would greatly benefit the US dollar and history shows us that a strong greenback is more often than not, negative for gold.

If indeed the tax reform fails, we can expect a serious reversal in gold to the upside.

The short germ focus for gold will be today’s interest rate decision from the US Federal reserve followed by a monetary press statement.

A rate hike from 1.25 percent to 1.50 percent is already factored into the gold price so there will be no surprises there. All eyes will be on the following monetary statement and how many times the fed plans to lift rates next year.

It seems that the fed will be reluctant to spook the market to much before Christmas and may take a neutral tone with regards to the US economy and rates and we may see gold benefit as a result.

The material published in on this page is produced by the FIBO group companies, and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Fibo Markets

FIBO Markets Ltd. (ex. FIBO Group Holdings Ltd.) is authorized and regulated by the CySEC (licence no. 118/10) and operates in accordance with the Markets in Financial Instruments Directive (MiFID) of the European Union.

Unfortunately, our services are not available to individuals residing in Canada, the United States of America, North Korea, Iran, Iraq, Israel, Australia, Belgium, or Japan.

29 Agias Zonis, 1st Floor, 3027, Limassol, Cyprus

© 1998—2023 FIBO Markets Ltd. (ex. FIBO Group Holdings Ltd.)

IMPORTANT: Please be informed, that our services are available for Professional Clients only. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Please note that our services are provided only to the residents of the following counties (in alphabetical order): Austria, Bulgaria, British Virgin Islands, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Kazakhstan, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Oman, People's Republic of China, Poland, Portugal, Romania, Russia, Slovakia,Slovenia, Spain, Sweden, Ukraine, United Arab Emirates.

Please feel free to contact out Support in order to get further assistance.