Usually it does not retrace more than 1/2 of it's previous advance..
The practical takeaways
- If we get a breakout of the handle with strong volume, this is a buy signal
- Until this breakout, expect the daily moves of gold to be sloppy and choppy
- If this breakout does not come and we cannot hold the handle, this could be a shorting opportunity
Yellen's dovish words pushed the dollar lower and gold higher.. will it stick? Watch these levels, , and divergence in or for clues.
Historically, gold and interest rates do not like to move in the same direction..