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

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