Bernanke said on wednesday the FED was not going to taper and would continue QE. Gold immediately spiked right into resistance trapping any one who bought at the top of the range. This was a classic break of channel/support and price comes back to test it as resistance along with the upper trendline and 1373 S&R level. Any rallies back up to the top channel is a sell and a buy at the bottom of the new downtrend channel on signs of support. If price breaks the bottom channel and 61.8 fib at 1276, is a sell on the breakout for aggressive traders, for conservative traders one could wait for the pullback. Would also look for price to come back to the bottom channel to sell once again. Gold likes to break support and back test it as resistance.
Why am I so bearish on gold with continued QE? Looking at all past QE events, gold sold off, and for the last two years it has not been able to regain its 2011 high. If price finds support at its 1180 low then there is a possibility gold has put in a low there, a break of this level and a gold could slip down to 1000 quite rapidly.
Why am I so bearish on gold with continued QE? Looking at all past QE events, gold sold off, and for the last two years it has not been able to regain its 2011 high. If price finds support at its 1180 low then there is a possibility gold has put in a low there, a break of this level and a gold could slip down to 1000 quite rapidly.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.