THE GOLDEN BOY IS UP AGAINST THE ROPES
The upcoming week holds several key events that will most certainly move the gold price & Wednesday's Fed minutes release for the May meeting will be one of them. Allow me to remind you that in the aftermath of the May 2/3 meeting, the gold price was waterboarded by $35 in a matter of a week. The torture would have continued if not for the firing of FBI director Comey by Trump. Will the minutes be more dovish in tone than the announcement? I doubt it. The market odds for a June rate hike returned to over 77% today after a brief dip to 67% and there will be Fed heads out next week with comments.
On Friday, we have the gold futures contract expiry which is usually a pressure on the price as well as the GDP reading which is a crap shoot.
The LARGE SPECULATORS have reduced their bullish bets for the 3rd straight week and there is room to sell more. The dollar is in extreme oversold territory and a relief rally is due.
Which brings me to a bearish HEAD & SHOULDERS forming on the daily chart.
If the price pulls back to test the neckline it will be a cause for concern. In fact, even if it bounces on the first test there will be yet another test in the near future. Should the price breach the neckline ... expect $1200 as support. To invalidate this pattern the bulls need a close above the head at 1295 now.
The Golden One has a couple of tough rounds ahead and another helping hand from Trump will come in handy right about now.
On Friday, we have the gold futures contract expiry which is usually a pressure on the price as well as the GDP reading which is a crap shoot.
The LARGE SPECULATORS have reduced their bullish bets for the 3rd straight week and there is room to sell more. The dollar is in extreme oversold territory and a relief rally is due.
Which brings me to a bearish HEAD & SHOULDERS forming on the daily chart.
If the price pulls back to test the neckline it will be a cause for concern. In fact, even if it bounces on the first test there will be yet another test in the near future. Should the price breach the neckline ... expect $1200 as support. To invalidate this pattern the bulls need a close above the head at 1295 now.
The Golden One has a couple of tough rounds ahead and another helping hand from Trump will come in handy right about now.
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Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.