Gold after the Fed and Brexit Article 50

The UK triggered the official Brexit process but gold and forex pair made limited movement yesterday. Gold has moved from 1247 to 1255 for many hours to wait for a break-out of the 1248-1257 to start a new trend.

The USD Dollar Index has gone up after the Euro committee made a correction to its momentary policy announcement yesterday and Fed official Eric Rosengren said there would be three more rate hikes this year. Gold has been traded around 1248-1251 zone for the entire today’s Asian and Euro trading sessions.

Gold Trend is in consolidation

Gold Trend is in consolidation

Gold trend is in consolidation to wait for U.S jobless and U.S GDP reports at 8:30 AM, the released number of these two economic reports will make a strong gold price movement to start a new trend in which the 1255-1257 is an important zone to watch up-trend.

Will gold make a correction?

Thursday, March 23, 2017

Gold has moved from 1198 to 1251 because the US Dollar has dropped quite hard on a more dovish Fed and concern over Trump administration policies.

The USDJPY dropped bellow the 111.60-112.00 zone which was a positives signal for gold up trend. The USDPY break-out was not convincing so gold failed to close above the 1251 level yesterday March 22

JPYUSD break-out bellow 11.60-112.00 hasn’t confirmed, yet?

The failure to close above the 1251 yesterday and reversal pattern on H4 chart  makes gold into consolidation. Gold have to break the 1248-1251 to continue its up trend to move to 1261-1261

Gold H4 Chart on March 23

Today March 23, 2017 – gold is expected to trade in consolidation from 1251 to 1241 to wait for the two important events – Job report at 12:30 GMT and Mrs Yellen speaking at 12:45 GMT. These two events will make strong gold movement and it will break-out of the 1241-1251 zone to continue its up trend or make a correction.

From the technical analysis, the 1248-1251 becomes a key zone to watch for gold direction until 12:00 GMT. Gold will drop to 1239-1241 if it is sold off because of profit taking by gold buyers to prepare for the two US important events at 12:30 GMT and 12:45 GMT