I think it would be fair to say that at the moment, we don’t know. The FOMC declared intentions of hiking rates a couple of times in 2023 and the markets did not like it even though the proposed event in 2 years away. Gold did not like it either and ended the week 5.5% down.

What’s next? Let us use price action analysis. As the daily chart shows, we are in an impulsive down move. The bearish candles last week are the biggest we have seen recently. Gold did make an attempt on Friday to recover / stabilize but did not succeed and the day ended in ‘red’ with a long wick on the upside.
We are in a significant support zone in the 1764 area but it appears that a break below will probably happen. The next area to provide support is located in the 1680 region. This area was in play in March and then April, effectively held price twice ( double bottom ) after which we had a decent recovery to the 1900’s.

My current bias is neutral and I don’t want to go short. I would prefer to wait and watch what happens next week. Overall, IMO, this commodity is still bullish , until we stay above 1680. My preferred trading direction is with the trend if/when the opportunity presents itself.

If you like my analysis, please give it a “thumbs up” and follow me to get immediate notifications.
Always use sound money and risk management in all your trades.

more here: https://www.tradingview.com/u/Trading_Vista/

In our Facebook group, which you can join anytime: https://www.facebook.com/groups/328412937935363/ you will find 5 simple strategies on which my trading is based. There, every day  we post fresh analyses of currency pairs and commodities. You can also visit my channel where I post my trading ideas: https://t.me/TradewithDargo




Leave us a comment!

Error, group does not exist! Check your syntax! (ID: 3)
Previous articleAfter the FED… USDCAD longs suggested
Next articleGBPJPY – an inside bar heralds end of bearish correction?
Ravi Madan
After a rocky start in 2010 (blowing up a $10,000 trading account), and experimenting with various indicator based systems, he found his comfort zone and success with price action trading. He does not study chart or candlestick patterns, instead relies on what the chart is telling about direction, strength and the flow in the markets. He advocates that the most vital components to trading success are: a trading plan, following it 100% of the time, keeping a positive R/R ratio,sound risk and money management, patience & discipline. Keeping a journal where every trade is documented is an essential tool for learning and enhancing skills. Finally, never trading without a stop, never moving the stop away from price and not being ina hurry to move it to breakeven either, complete his trade execution style.He also publishes trade ideas on TradingView.