Gold Weekly Analysis: It's all about FOMC and Rate Decision...

Having been in gold sell mode all the time since the beginning of last week, but the market closed up nearly 500 pips after the release of the positive CPI report of the American session last Friday.

Both the Daily and Weekly candles have closed as bullish candles. Although the market has closed bullishly, Gold has not been able to close above its strong resistance zone. And there is no big report release for Gold until next Thursday.

So, there will be a big move in the gold market on FOMC and Rate Decision. And until Thursday, Gold has technically a chance to rise a little further to the $1880/1900 price zone. .

Resistance from current rate is $18800/1900.As market doesn’t have too many market mover days in early of the next week and gold closed in full faced bullish candle.

So, beginning of the next week, gold may go up and test $1880/1900 it drops. And I am expecting gold may drop from Trendline Resistance Zone of 1880/1900 during FOMC and Rate Decision.

Well, now if the Fed makes a dovish statement or does not raise the 50 bp rate then maybe it will close above $1900 and again the market will create a chance to rise till $1950 and $2000.


Reason for gold's drop:

1. Next week FED will hike rates more than 50 BPs.

2. Recently the US job market report and CPI rose more than expected.

3. Gold is near to its trendline resistance zone. So, technically it is expected to drop from the present zone of $1870/1900.


Caution: Of course we are not going to sell instantly. Because D1 and Weekly candle closed in full faced bullish pinbar candle.

So, it has created more chances to test the nearly $1880/1900 price zone again. I think till next Thursday (FOMC and Rate decision) gold will go up.

On Thursday we have the FOMC and rate decision. So, I am expecting gold will drop at the FOMC and Rate decision day not before.. Let's see what happens.

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