Gold is predictably reacting to the rate hike from the 1/2 level, following which, as anticipated, a recovery has begun—currently at 50% of the decline, though we have already surpassed the 1/4 mark from the recent low.
I maintain my previous outlook: a recovery phase. The immediate target is the 1/2 level calculated from yesterday's low, which currently sits in the 4343-4352 range.
News:
Goldman expects a Fed rate hike in October
Trump calls for an IMMEDIATE rate cut
Trump stated that he trusts Fed Chair Warsh, despite the Fed's rate hike
Gold is successfully playing out the previous scenario and has even pushed past the 1/2 level. The key now is to hold above this 1/2 mark and form a pattern via the previous extreme (which would be highly technical in terms of a local reversal pattern).
In this case, the probability shifts toward the completion of an upward cycle, with primary targets at the 4393 level (with potential reach toward 4403) and the 4442-4450 zone.
Explore more in the GOLD Trading Hub →