Gold, as expected during my last week's commentary, rebounded the 1828,90 strong resistance and partially formed the C&H pattern.
As I predicted on my 24th December Gold's commentary, the Gold Spot price action, by the end of Y2021, was bullish and reached #1828,90 strong resistance, partially forming the Cup and Handle Pattern on daily's chart.
The strong 15th, 23rd July and 3rd September resistance, once again was not breached, hence the price action got rejected and on aftermaths reached 1.800,90 psychological barrier. It is worth noting that the price action once again repeated its cycle proving that the Gold is cyclically asset to trade with and my mid term Gold analysis proven to be correct.
What moved the markets on yesterday's session was the investors certainty of rate hikes in Y2022 (many of them predicting 2-3 interest rate hikes during Y2022) and lower levels of concern regarding Omicron coronavirus variant, as it proved to be less dangerous to population, with studies showing much less hospitalisation cases. Regarding all the mentioned above, investors took their part in and invested mostly in Dollar, which throughout yesterday's session rose 95.667-96.226 against greenback of six other currencies (Euro, Swiss Franc, Japanese Yen, Canadian dollar, British pound, and Swedish Krona). US 10 Year Treasury Yields also rose cca 0,101% directly affecting Gold price.
Till the end of the week, three Fundamental events will also be affecting the markets, and those are Wednesday's late afternoon Fed's Meeting Minutes, Thursday's ISM Non-Manufacturing PMI Report- showing how good is the non-manufacturing sector generally expanding and Friday's Non-Farm Payroll Report. All reports, by my prediction should show high levels of inflation and sooner than expected interest rate hikes.
Considering all written above, the high level of Gold's market volatility, and the fact that Gold did not absorb all of buying pressure on DX and US10Y, my position on Gold is currently neutral and I will engage buying or selling orders only if the Price action breaks the strong 1828,90 resistance, or 1797,90 support.