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
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
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