Everyone will be looking for changes in their outlook. There’s speculation they may have to begin raising interest rates sooner than forecasted due to the sharp rise in 10-year yields.
Gold Near-Term Key Levels
The price action surrounding a Fed announcement is often tricky. Sometimes prices reverse a day or two later, so it is important not to read too much into the initial market reaction.
- A breakout in gold above $1740 would be bullish.
- Whereas breaking lower and closing below $1700 would be near-term bearish.
GOLD 1-HOUR CHART:
Gold is consolidating below $1740. These patterns usually break to the upside. A breakout above $1740 could trigger an advance above the November $1767 low and confirm a bottom at $1673. Gold would have to close progressively back below $1700 to neutralize the potential for an immediate breakout.
Our recent Gold Update suggests gold miners confirmed an important low, and gold should soon follow.
Our educational portfolio entered new gold positions last week.
AG Thorson is a registered CMT and expert in technical analysis. He believes we are in the final stages of a global debt super-cycle. For more updates, please visit here.