Top Story

What Does the Gold Market Know?

The FOMC left rates unchanged today, targeting the 1.5%-1.75% range, as expected.  The only small change the Fed made was to raise the IOER rate by 0.05% and announced that they would be extending repo operations until April.  Otherwise, the statement and the press conference were….boring (for lack of a better word).  However, as soon as the statement was released, gold began to go bid:

Source:  Tradingview, COMEX, FOREX.com

Perhaps it was just back to business as usual.  Below is the base chart I’ve been using for Gold.  It’s the daily futures chart, which has broken out of a flag pattern and is currently on its way to target near 1723. Price had paused along the way and the RSI moved to extreme overbought territory (above 80).  They slight pullback gave the RSI room to unwind back into neutral territory. 

Source:  Tradingview, COMEX, FOREX.com

Maybe someone knew early that Google was going to announce that they temporarily going to close all office in China due to the Coronavirus (source: Verge). 

Or perhaps someone was just trying to push price higher through horizontal resistance, as seen on a 60-minute chart:

Source:  Tradingview, COMEX, FOREX.com

On a 240-minute chart, price is trying to break higher out of a symmetrical triangle.  Perhaps someone was trying to push it through the upper trendline.

Source:  Tradingview, COMEX, FOREX.com

Does the Gold market know something other markets don’t?  Whatever the reason for gold moving higher on the release of the FOMC statement today, it still looks like it’s trying to head towards the 1723 level!  Price normally doesn’t move in a straight line, so expect some pullbacks along the way if it does continue higher!


Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.