So ultimately this is a situation where I think if we do drop out, there will probably be buyers willing to participate. If we were to drop below the $2,500 level, we are talking about wiping out the 200 day EMA and a pretty drastic drop. Gold is struggling at the moment, but I think it is trying to find some bandwidth to trade in.
The FOMC will obviously have a major influence, but we also have the Bank of Japan and the Bank of England, both making interest rate decisions, which will also have an effect, not as drastic as that of the Federal Reserve, but still part of the puzzle. In the longer term, I am still optimistic about gold. But as we approach the end of the year and wait for central banks, I don’t expect much here, at least nothing sustainable, but a break above the $2720 level then opens up the possibility of the uptrend continuing longer term. .
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