YLG analyzes "gold price" in the evening of 18 Sept. 67, sees risk of adjustment down after the Fed cuts interest rates.

YLG analyzes "Gold price" in the evening of 18 Sept. 67, sees a risk of adjustment down after the Fed cuts interest rates, recommends opening a short-term profit-taking buy position if the price is above the support level of 2,561-2,549 dollars per ounce.

September 18, 2567 YLG Bullion and Futures Company Limited (YLG) Gold price analysis this evening: Today's gold price (18 Sept) is moving alternately up and down in a narrow range, still supported by the downward adjustment of the dollar and US bond yields.

Although a CNBC poll showed that 23 out of 27 experts predicted the size of the Fed's rate cut this time to be only 0.25%, which is a support for the recovery of the dollar and US bond yields, the recovery is still limited because investors are weighing the Fed's expectation of a 0.50bp rate cut more than a 0.25bp cut at this meeting.

This afternoon, the UK released data showing that August service sector inflation accelerated to 5.6% year-on-year, up from 5.2% the previous month, causing investors to increase their weight above 70.0% that the Bank of England (BOE) will hold interest rates steady at its meeting tomorrow (September 19). The pound therefore strengthened, adding to pressure on the dollar.

In addition, the issue of the size of the Fed's interest rate cut is considered highly uncertain, causing investors to delay trading to limit risk before the results of the Federal Open Market Committee (FOMC) meeting and the statement of Fed Chairman Jerome Powell tonight at 01.00 and 01.30 respectively.

If the FOMC cuts interest rates by only 0.25% and projects the size of the interest rate adjustment in 2567 to be lower than 1.00%, it is likely to support the dollar to strengthen. Therefore, the price of gold is still at risk of falling even if interest rates are cut.

YLG recommends taking the risk of opening a short-term profit-taking buy position if the price can stand above the support zone of $2,561-2,549 per ounce. Wait to gradually close the profit-taking buy position if the price does not rise above the resistance zone of $2,586-2,590 per ounce. And the buy position cuts losses if the price falls below the support level of $2,549 per ounce.

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