People may have switched longs because hiking rates means stocks to fall so switched gold longs GOOD? (Generally the agreed principle.)
USA dont want to push for a stronger dollar now it seems. Fair Trade as Trump Calls it.
JPY authorities have been unloading USA Debt as I saw in an article. So yen becomes stronger and UJ kept short biased eventually some help in hand for GOLD bulls.
Rate hikes mean the economy is good. This will attract more global money shifting to the USA into the markets. The stock market will go vertical. Gold needs to sell off hard before any major move upwards.
USAS_INC
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@psp, Thanks for the idea considering. I have another view too tradingview.com/chart/XAUUSD/VKVSMeXW-GOLD-Play-BEFORE-FOMC-HIKE-IDEA. I think hiking rates not always a mean saying economy is doing fine. Have to consider many factors too. Even not developed countries too increase rates to promote their investors. I believe USD undergoing lower degree correction phase which could take 2+ years. SNB totaled 86.1bln in 2015 to overcome overvaluation of CHF. SNB praising for weaker CHF. But if Dollar pushed higher their big fall is imminent too. They will wait neutral and short biased until this 2+year phase is finished IMO
normis
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nice thinking :) i see more downward at dxy too.
USAS_INC
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@normis, If global demand for GOLD goes up prices may go up. Higher the demand higher the price.