The DXY has begun to correct. Other currencies have started to strengthen against the USD. But gold has not reacted as strongly as it should have. Gold had been very sensitive to the USD when the USD was getting stronger, so logically we would expect gold to strengthen when the USD began to weaken. But this has not happened yet. It could be because of some crucial levels created in golds fall. These are levels of congestion, remember it has had a strong and manipulated fall. These crucial levels gold has to surpass at every step now are 1165, 1177, 1181, 1196, 1205, 1215, 1230, 1254, 1264.
Comment:
Now trading at the upper end of the channel. It's failed to close above 1177, despite breaking it intraday twice. There is a risk of it staying weak and hitting the low end of the channel around 1130. This can be before or at announcement of FOMC.