dlifestyletrader
Long

Gold Long - Gold Surged on Dovish FOMC

FX:XAUUSD   Gold Spot / U.S. Dollar
The gold rebounded and surged by 150 pips amid a dovish FOMC.
Not just the dampening of a rate hike but also an increased sentiment that the next move could very well be a rate cut.
The mid-term outlook of the dollar has confirmed to be bearish and gold is most definitely to keep climbing as the dollar weakens further.
For now, we also to exercise patience to wait for the price to retrace for a better entry level which will be near the demand zone below at 1312.
That said, the gold is also very likely to just keep breaking new high but chasing after the trend is never a good strategy and risk may become mismanaged easily.
Comment: The retracement came fiercely and almost wiped out all gains previously.
However, the price did not break new low and this is most likely an act of wiping out buying orders by the institution.
The fundamental that dollar will weaken further does not change, not until the price is able to break a new low.
If you are in this trade already, you are still good but may want to consider cutting partial losses if you wanna reduce your risk.
On the other hand, this can be seen as a good entry price to buy again with stop loss just below the previous low.
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