Once again! Gold has corrected to the 1700-1690 range. The correction is due to the ADP employment change in the US coming in at 2.76m rather than the forecasted 9m. However Gold was in need of a correction as it was overbought once again. Looking back at previous trend similar to this downward channel, we should see Gold bounce or breach the lower trend line and the begin a rally to a new high. Gold has a predictable price range which is usually between $50-$70. If the trend rallies back up we should aim for price around the $1770-80 range.
Next week from June 9-10 Fed chairman Powell will be announcing the interest rates decision. If interest rates are made negative Gold could hit new highs past $1800. Positive interests will cause a sell off in gold. I'm not too sure how Gold will react if they keep interest rates the same.
Keep an eye out for those dates! super important to Gold!
Next week from June 9-10 Fed chairman Powell will be announcing the interest rates decision. If interest rates are made negative Gold could hit new highs past $1800. Positive interests will cause a sell off in gold. I'm not too sure how Gold will react if they keep interest rates the same.
Keep an eye out for those dates! super important to Gold!
Comment:
Sorry. I forgot to mention the 4th touch points. Prior to the 4th touch of the lower trend line we were looking for the 4th touch to create a reversal in the downtrend.