Gold is in a downtrend which started with a rejection of the major resistance at 1295 then after the FED rate hike a couple weeks ago, USD has been gaining strength and gold has been melting. Just some hours ago a flash crash on GOLD sent it lower nearly 200 pips in minutes.. This resulted in the counter trend pullback ending and downtrend continuation. The price of gold almost hit the major daily TL support that has been causing gold to make higher lows all throughout 2017. I expect price to test this support soon but will it bounce and continue the major uptrend of 2017 or break and start a new series of HL, LL. I think we can get this answer tomorrow afternoon (EDT) when fed chair Janet Yellen speaks regarding future fiscal policy and the increase of interest rates. More hawkish statements stating a continuation of tightening despite recent weaker economic data could cause this TL to break, but if we hear a different side indicating weaker NFP next week and a halt in the plans for atleast 1 more rate hike this year we could see gold rise again.
SEE PRIOR USD/JPY analysis for currency correlations and supporting facts/evidence.
SEE PRIOR USD/JPY analysis for currency correlations and supporting facts/evidence.