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The yellow metal was able to reclaim some lost ground over the week benefiting from a weaker US Dollar which fell in response to the latest FOMC meeting. In a clear case of ‘buy the rumour sell the news’, the US Dollar fell despite the Fed raising rates and revising its economic forecast higher. The Fed raised its forecast for 2018 GDP growth from 2.5 percent in December to 2.7 percent, and increased the 2019 expectation from 2.1 percent to 2.4 percent. Alongside the .25% increase, the Fed also gave the market a signal that the path of further rate hikes will be more aggressive than originally projected. The Fed adding a further rate increase to its dot plot projections over the next two years, taking the total number of projected rate hikes to four.
The technical landscape in Gold remains largely unchanged from last week as the stagnation into the apex of the large contracting triangle pattern continues to intensify. Prices are locked in a range between support at th...
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