Gold Market Continuing Volatility - 26 July 2017

Alp Kocak

Gold markets had a slightly negative session during the Tuesday session as we crashed back towards the $1250 level. We had formed a shooting star during the day on Tuesday, which show signs of negativity. However, today is the FOMC Interest Rate Statement coming out, as well as the actual decision. I believe that the market should continue to see volatility. Quite frankly, today is going to be difficult to trade, but I would point out that the 50-day exponential moving average is just below current trading and is testing the $1250 level itself. With this being the case, I expect to see a lot of volatility during the day with the headlines coming out. Because of this, I have a reasonably wide range of consolidation, but once we break out of it, I more than willing to put money to work.

Training the break out

Breaking above the $1260 level for me is a very bullish sign, and it should send this market looking for the $1275 level above, and then eventually the $1300 level after that. Alternately, if we break down below the $1240 level, I think that the gold markets will fall rather significantly, reaching down towards the $1225 level, and then eventually the $1200 level. With this being the case, I think that it’s a simple matter of waiting until after 2 PM EST, or New York time. We should see what happens as far as a reaction is concerned to the words coming out of the Federal Reserve. Once we break out of this little consolidation area though, I think it will give us an idea as to where we are going next, and I more than willing to put money to work at that point. Until then, sit tight.

Gold

Alp Kocak
Alp Kocak has been trading Forex since 2003. He writes technical analysis based on Japanese candlesticks and Ichimoku Kinko Hyo.

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