So much noise about the dovish Fed everywhere, but Gold’s downtrend stays intact.
Gold failed to take out falling trend line hurdle today and a weak closing is pretty much a done deal, which means we are heading back to $1200 levels.
Gold’s move forces me to think –
- Does precious metal traders know Fed is going to hike rates in April or June
- Or markets feel equities and other risk assets are undervalued. However, anybody calling equities undervalued must be kidding
Hence I am forced to believe someone out there believes policy tightening will continue ..