The Fed is stringing along financial markets. Either the economy is strong and deserve a tightening of , or it is not. The voting members of the FOMC still remain divided and as confused as traders. NY Fed Bank President William Dudley told a crowd at an event held by Thompson Reuters that Fed policy will be highly reactive to the market’s reaction.
The dollar pushed higher and holding above 99, while still remaining a key headwind for gold prices.
Currently trading at $1,196 per toz, price action is lingering underneath broken support of $1,198/$1,200. The XAUUSD four-hour chart shows two different, potential, crossovers – 72/200 and 20/50 .
This could create technical selling trending between $1,186 and $1,180. Secondary support can be found at $1,170.
If price action can rebound above $1,200, traders will likely target $1,209 and $1,224, respectively.
Gold will likely remain range bound until the Fed makes their mind up on rates, one way or the other.
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