The driver for the Gold market currently seems to be sentiment! The safe-haven aspects of the metal may have been a boost for the Gold, but will it be enough to propel it to further uptrends.
Weekly Gold Digger
The Gold has bounced after the awaited Fed rate hike. It is unusual that Gold would trade up as the Crude Oil continues to slide.
The US Dollar has decreased giving Gold a temporary bounce ahead of the muchly anticipated Fed meeting next week where a hike may be within the monetary policy.
Finally the oversold Gold bounced in light of the US Dollar weakening! The Gold may takes cues from the US Dollar and the Crude Oil from time to time
The Chinese rate cut should have bolstered the Gold somewhat yet the Gold is clearly in a downtrend currently. Investors should be buying Gold in other currencies with the rate cuts in mind.
The governments seem to be devaluating their currencies and foreign entities do not seem keen to allocate to currencies as they would Treasuries or the precious metals.
The Gold market has bounced as a result of the US Fed holding off on an interest rate hike.
The Gold market has been driven lower all week as we approach the FMOC next week which has possible signs of a rate hike.
The Gold market may be pressured by the strong US Dollar and the upcoming potential rate hike.
The Gold chart is showing a compelling formation. There appears to be a double bottom giving the December Gold support at around 1117.00.