Good afternoon team,
Market sentiment is positive with global equities moving higher. The US stock market is at record highs leading into the FOMC minute release. The safe haven JPY has been on the back foot today with commodity related currencies moving into the green. The USD has remained under pressure, however that could change any minute.
With the safe haven demand low, gold may face some selling pressure after falling from its record highs. Please read through the email write up regarding gold. This goes into detail about golds past performance and hedge fund positioning.
GOLD – Technical Analysis
Gold has had a sharp bounce from the 1880 handle and is potentially trading between a bear flag formation. This set up requires you to trade manually. The SELL set up is ONLY valid if the market breaks below the bear flag formation. Gold will likely remain inside the bear flag until nearer the FOMC minutes at 4am tomorrow morning.
One method to trade gold, wait for a breakout followed by a retest of the formation, then enter a sell with a stop loss above the swing high. The swing high is the last major high.
The 23% FIB retracement is a key zone to watch out for at 2025. IF the market is rejected from this level we could see a break out of the bear flag formation.
If the market breaks above the 23% fib retracement, this set up is invalid as gold will likely push towards record highs.
Good luck trading! Any thoughts or comments we will be in the live chat!