Gold Analysis

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Straight into the thick of it, continuing from the previous blog post, Gold is currently in a downtrend but I'd love to call this a healthy pullback since the uptrend is still on. What we're seeing now, the dip from 2065 levels, speaking like an investor (chuckles) is an opportunity provided by the market for investors to dump their stocks & buy Gold instead since the sorry state of the economy, rising rates & rising inflation makes all other investments non-promising in the short run of about the next two years in my view.

Technically speaking now, price has found support at that 1865 level which looking left we see is a zone of former resistance and the most interesting thing I can say relating the coming rate hike to the current price level is that on that same week (1-5th November) we had the exact same events on the USD side namely (in summary) the interest rate decision on a Wednesday (0.25% unch) followed by the NFP release on Friday. Then the Following week there were some other important news events, a speech from the Fed's Jerome Powell, CPI release, and others. In summary what I'm saying is the rate hike is expected to serve as a catalyst for the reversal of the price given the current technical level. However, this is just a probability and I might be very much mistaken.

If and only if it turns out that the rate hike does provide a reversal, I'm going long, my sl is currently at the week's low (slightly below) and I'd be looking for signs of exhaustion of the buying pressure at 1953.0 which should serve as my first take profit zone and once price gets there a break above 2000 is likely in my view.

The interest rate decision has a long term effect on the markets. 

NFA. (you'll know what this means if you decide to place your trades according to someone else's analysis). 

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