June 23 2021
Arguably, Gold already had a top in place above 1900.00 a few days before last weeks US Federal Reserve meeting.
The announcement that US interest rates could be on the way back up caused a heavy round of US dollar buying.
I think this added to the existing downside momentum and caused the collapse of Gold to 1760.
But the upshot of all this is that the FOMC is changing policy, but not quickly. Yesterday Powell sounded dovish again, citing inflation as transitory and a by-product of the unusual economic situation the US found itself following the pandemic. Powell said he won’t act just on high inflation, it will need to be evidenced and actual.
He wants full employment to be a trigger for the monetary policy to change.
So will Gold bounce from here?
Gold Technical Outlook
Subscribe to get access
Read more of this content when you subscribe today.
To receive this newsletter contact support@8dragonstrader.com
8DC FX 