Strong dollar remains in headwind.
Bullion.Directory precious metals analysis 9 April, 2015
By Christopher Lemieux
Senior Analyst at Bullion.Directory; Senior FX and Commodities Analyst at FX Analytics
The Fed is stringing along financial markets. Either the economy is strong and deserve a tightening of monetary policy, or it is not.
The voting members of the FOMC still remain as divided and as confused as traders. NY Fed Bank President William Dudley told a crowd at an event held by Thompson Reuters that Fed policy will be highly reactive to the market’s reaction.
The dollar pushed higher and holding above 99, while still remaining a key headwind for gold prices.
Currently trading at $1,196 per toz, price action is lingering underneath broken support of $1,198/$1,200. The XAUUSD four-hour chart shows two different, potential, bearish EMA crossovers – 72/200 and 20/50 EMA.
This could create technical selling trending between $1,186 and $1,180. Secondary support can be found at $1,170.
If price action can rebound above $1,200, traders will likely target $1,209 and $1,224, respectively.
Gold will likely remain range bound until the Fed makes their mind up on rates, one way or the other.
Bullion.Directory or anyone involved with Bullion.Directory will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading in precious metals. Bullion.Directory advises you to always consult with a qualified and registered specialist advisor before investing in precious metals.
Leave a Reply