Gold prices dropped following renewed speculation that the Fed QE tapering either December or January. This renewed fury surrounding tapering QE is born of what the Fed did not say in the latest FOMC statement, mentioning the negative economic impact of the recent few US government shutdown. market interpreted this as a sign that the Fed does not consider $ 15 billion to $ 50 (depending on who you ask) economic damages from the judgment treated as important enough to delay their undisclosed conical QE calendar.
timetable
However, the decline was not particularly remarkable. We managed to negotiate below briefly 1,340 support, but prices rose again earlier in the hour following the announcement. In fact, when the US session closed, gold prices were actually a little higher than the lowest Asian trading yesterday. The decline simply erased the gains that were made at the beginning of the European session, which peaked during the next session of the United States. There is no good reason for gold to appreciate during this period, which we have to consider that the rally was driven by price speculators in a status quo scenario of the FOMC to 'advanced. It also means lower after FOMC is simply a single revaluation of gold prices after traders realized they were wrong, and not really a true bearish movement. This corresponds to what has been observed above where the Fed's market interpretation is "hawkish" is weak at best.
However, by trading below 1340 we could see the short-term bearish momentum to support 1,330. Stochastic readings are currently in the oversold region, but holding 1,340 support turned resistance resulted in the curve Stoch now pointing lower after rebounding off the 20.0 level, which suggests that we may yet see again another bearish for now.
Weekly Chart
weekly chart is bearish with the bearish rejection from the bottom of the channel is gaining ground. However, stochastic readings continue to point more, and ideally we should see continued lower price that will pull the Stoch curve lower and at the same time give us a Tweezers Top model is a much stronger bearish signal that what we currently.
If the ideal bearish scenario does not materialize, traders may want to wait for the response of prices next week and see if broad market is seeing signs bear the same techniques we are now. In addition, we have the latest COT figures on hand that will help us see if the institutional speculators have given up their long positions - a significant factor so strong bearish follow-through must take place
more Links.
WTI Crude Technicals - remaining bearish But Lateral trend can
NZD / USD - S / T trend Lateral Intact Despite hawkish RBNZ and FOMC
GBP / USD - Takes a breather fall below 1.6050
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