Recent comments about tightening monetary policy early caused gold to slip today by 1.61% at the time of writing this. Governor Christopher Wallace has called for this policy of early tapering which could be followed by a rate hike soon after.
Gold could be in trouble in the short term, but this is just another call-to-action that hasn't been put in place yet. The tapering process is also not an extreme measure comparatively to the amount of asset purchases the Fed is making each month. COT data showed us that money is still flowing into this precious metal which could mean that we could be setting up for another buying opportunity.
Gold could find support here around $1818 where there is clean support. We also have the 50 and 200 DMA just below in the $1790s should price continue to fall. If today's candle could pull back hard enough to show rejection from the lows on this 1D timeframe, we could see an increase in buying volume.
12/2/2021 US equities fell 5% from the highs after fears of a new coronavirus variant emerged and the first case was recorded in the US. SPX500 is up .10% on the day at the time of writing this. Our outlook The new omicron variant is definitely concerning most investors right now as the US will […]
Check out my previous G/U deep dive from early October here to see how we have progressed... Technical Outlook: Price has mainly been travelling in channels throughout the past year. As we saw the ascending channel formed post-Covid last year, price began retesting all previous key horizontal levels. Over the past couple of months, price has […]
11/30/2021 Gold price rose 0.59% on the day at the time of writing this in light of the uncertainty surrounding the Fed's policy towards the new variant and tapering of asset purchases. Our outlook I think gold will likely see some green today as the virus concerns can cause a slow in growth since the […]