22 Aug 2013
Gold slides at end of day after FOMC minutes boosted Treasury yields
FXstreet.com (Barcelona) - Gold dropped, rallied and then dropped again after the release of the FOMC minutes and finished slightly lower for the session. It still sports a net bullish short-term chart, though.
Gold acted as it should given the lack of clarity in the FOMC minutes
Traders were hoping for clear direction from the FOMC minutes Wednesday and instead got a picture of a house divided in the FOMC boardroom. The lack of clarity forced gold to gyrate wildly in the late afternoon and netted traders just a modest decline on the day. Look for more fireworks Thursday and Friday as the news starts to flow from the Jackson Hole Symposium.
Technical outlook for gold
Gold’s next stop on the upside in the short-term will likely be at around 1,394, but technicians maintain that the more serious test for gold will not come until the 1,438 – 1,441 Fibonacci-generated target range. Short-term support for gold comes in at the previous breakout point of 1,349.10.
Gold acted as it should given the lack of clarity in the FOMC minutes
Traders were hoping for clear direction from the FOMC minutes Wednesday and instead got a picture of a house divided in the FOMC boardroom. The lack of clarity forced gold to gyrate wildly in the late afternoon and netted traders just a modest decline on the day. Look for more fireworks Thursday and Friday as the news starts to flow from the Jackson Hole Symposium.
Technical outlook for gold
Gold’s next stop on the upside in the short-term will likely be at around 1,394, but technicians maintain that the more serious test for gold will not come until the 1,438 – 1,441 Fibonacci-generated target range. Short-term support for gold comes in at the previous breakout point of 1,349.10.