Gold forms daily symmetrical triangle, eyes Fed meeting

Author: Giles Coghlan | Category: News

Golden triangle

The symmetrical triangle forming in gold looks to the Fed meeting midweek. A dovish Fed could be a catalyst for bulls to take gold higher from this tech set up. The Federal Reserve are facing a tricky situation. The US election is approaching which should result in a 'stay as we are' position from the Fed. However, the recent sell off in tech stocks will be a concern if it falls harder, so the Fed may want to step in to support stocks. One way they could do this would be by introducing the idea of yield curve control. If the Fed embrace YCC that will supportive for stocks and weaken the USD. Watch for a clean gold breakout higher in that situation. 
Golden triangle

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