Gold is passing this latest hawkish-Fed-surprise test with flying colors. Gold remained well above mid-November’s pullback low, and its monster upleg is alive and well.
You've got a pattern of a higher high and lower low. The market is fighting a dollar that's on a run to the upside and interest rates that are higher for longer and higher.
It's going to the 100-day average at $2642.5 and when you look even further in the market, if that gave ground, it can go to $2617, the lower Bollinger Band.
In recent decades, the Fed has a history of trying to support the stock market at the expense of “boots on the ground” Main Street inflation… which is very good news for gold.
Gold prices can break through the $3,000 barrier by the end of next year—even if the dollar stays high, Goldman Sachs said, pushing back on recent commentary.
Because last week's low is $2617.5, the 18-week average is $26-28 roughly - that's where the support is. Take that out and you open the door up for the lower Bollinger Band.
Into Fed Week” we go, during which 19 metrics come due for the Econ Baro, 10 prior to FOMC’s Statement Wednesday. Since the FinMedia said the Fed will cut, is that already priced into Gold?
