Gold technical analysis
Since gold hit $1357, markets have had the chance to re-think a few things:
- Global coordinated tightening isn't dead
- US 10-year yields jumped from a test of 2%
- Congress might actually get tax reform done
- Stock markets are hot
Add it all up and gold has been dragged $50 from the highs in seven trading days. The fall today cut through the uptrend since July as well.
The drop means that $1300 is fast-approaching. That's the old April-June double top that was broken in late August. It looks to me like we will hang around these levels until the Fed decision. If there's a strong signal there, it will be back into the old range and down to $1200. If the Fed is dovish, look for a return to $1360 and beyond.
At the moment, however, the momentum is lower.
