Technical analysis: As discussed, Gold reached Top (#1,792.80) by strongly rejecting the Price-action few sessions ago and should slowly start losing value. I once more witnessed that the market is pretty unstable these sessions and that I should approach post Fed rate hikes with extreme caution since that kind of announcement always bring turbulence on the markets. There isn’t big Price-action difference between Gold’s Spot prices ( Xau-Usd ) and contracts, which means that during these Volatile times Investors will move their capital from riskier assets (Stock markets, Equities) to Gold as a safe-haven that it represents for a long period of time, but with the ever-growing , Investors may choose Bond Yields, and very own new meta (which is the case lately), Bitcoin . The Hourly 4 chart’s Channel Up was broken and was testing the Lower High trendline, but I doubt it’s strength since Gold is Overbought almost on all charts. With DX Neutral below the Resistance after decent Fundamental readings, I doubt Gold has more upside momentum to go higher since DX shouldn’t dip anymore, but as repeated many times, Gold is ignoring DX movements and is more tied to Bond Yields. Truth is that unchanged Fed rate could be catastrophic for DX , but what’s keeping Gold on current levels (and not in further decline) also besides the general state of the economy, are Bond Yields which are soaring (along with , who’s chart is on ATH ), decent sentiment on the Bond Yields which may be due to the relief (output cut) news from the Oil sector (against the reality of the Jobless claims numbers), so in my opinion I may get the real move on tomorrow’s session as U.S. opening Bell approaches, and possible Resistance rejection would be ideal Selling opportunity.
My position: The inability to get above the Higher High extension on the along with the sharp uptrend on Bond Yields, are putting Gold under pressure again (as I stated many times, if Gold don’t recover #1,800.80, Gold will dip). At the same time DX (on a # +0.11%) has made a new Bottom and is Neutral at the moment. Gold is on an interesting Technical on the Hourly 4 chart, where Yields are soaring (# +3.41%) on positive sentiment as rises ( ATH ) and Money supply chart aswell on ATH . I will take my chances since Gold is still on stagnation candles, and keep operating with my Selling order as long as Yields are skyrocketing, with my Selling orders intact from #1,775.80 / calling for #1,740.80 extension. I will add more Selling orders if #1,760.80 breaks, and will keep track on Bond Yields. My plan is to keep my Selling orders and if they don’t deliver results, gradually close it near the Fed minutes within #8 hour’s time.