Gold – Falling trend line intact despite dovish Fed

So much noise about the dovish Fed everywhere, but Gold’s downtrend stays intact.

Daily Chart

gold.png

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 ..

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