bearish momentum in gold continues to roar like bulls just can not get a break. Price was already bullish because of the surprising absence of military conflict between Russia and Ukraine, although Russia has successfully claimed the Crimea on the map of Russia. Even a reported confrontation that left a soldier dead Ukraine failed to elicit something more serious, and it is clear that Ukraine is trying to avoid military conflict at all costs, erasing all the premium gold was fixed at the earliest when the market was a fear war may break
Unfortunately, the gold traders have a new problem they have to please. - Higher interest rates. Fed President Janet Yellen gave a startling clarity when asked when the Fed will start raising rates and mentioned it would take "about 6 months" after the QE program, which is a earlier than what the market has already anticipated. Time will tell if this was a gaffe or a calculated snide remark, but the implication is the same - risk of inflation going forward will be even lower and not only that, higher interest rates would make the Treasury held much more attractive as a safe alternative refuge rather than holding on gold that actually has a negative cost of detention, and it is not surprising to see gold tanked over 15 dollars per ounce after the announcement
timetable
price recovered slightly during Asian hours, but it is not really surprising given the broad sense of risk-off seen in stocks will continue to have an upward influence on prices, regardless of size. In addition, prices have come a long way from about 1360 to 1325 in the same day, and temporary withdrawal is still expected. On the balance of things, it is clear that the bearish momentum is still in effect as stochastic readings were flattened and threatens to begin to reverse lower. This is consistent with what we see in terms of share price when the price is unable to break the gentle resistance of 1333. As such, even if the price seems to have bounced off the bottom of the channel and must naturally seek Channel Top it is possible that prices simply can return lower here because of the overwhelming downward pressure or at best stay flat for the rest of the day until Top channel is labeled.
table Daily
things are not as bad on the daily chart, however, that prices have some levels support in the form of channel bottom, in 1325 and 1315. in addition, stochastic readings are close to oversold territory and we should be able to expect some kind of bullish response after a sharp drop this week. At the very least, it is possible that traders who may have shorted Or earlier wish to take advantage before the end of the week that will provide short-term upward pressure. In addition, we need to pay attention to institutional speculators who were the two strong gold buying in recent months. Lower prices may encourage speculators to clear their positions (if they have not already done so), but it is also equal, if not more, the likelihood that they may want to charge more gold to "price windfall "current.
Links:
WTI Crude - Pushing higher against Broad negativity
S & P 500 to 1.850 Intact After rising policy rates Yellen
GBP / USD - Weak earnings as employment data Shines
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