It happened yesterday. The Fed cut interest rates two weeks before the official meeting and one day before a suspected increase, and then by 50 basis points! The stock markets were disappointed, and Dax and Dow are currently trading at the same levels as yesterday, shortly before the Fed decision. There are several reasons why stock traders do not trigger a price rally. The Fed has already shot a lot of powder, there is no great cash stimulus for the banks or bond purchases, or you can also say that the market is still waiting for the ECB to do something. But meanwhile Canada, Australia and the US have cut interest rates noticeably this week. Only the Bank of England and the ECB are still missing. Apart from stock prices, the gold price could clearly benefit from the Fed decision!
Gold price is the winner of the Fed decision
The following chart shows the gold price trend since Monday. In the middle you can clearly see the leap upwards after the Fed’s interest rate decision yesterday afternoon. Gold rose from $ 1,604 to $ 1,647. And the market can maintain this level to this day with a current price of $ 1,642. The important question now is: are we about to make the ECB decision? Maybe falling interest rates and more liquidity for the banks? This can happen at any time, or not at all. But recent ECB statements suggest a decision.