Gold continues to see a lot of noise, as we are trying to bounce from the crucial $4,000 level, an area that is psychologically important, as well as important from a psychological standpoint.
Gold
The gold market pulled back just a touch during the early part of the trading session here on Monday, testing the $4,000 level yet again. All things being equal, this is a market that is paying close attention to a couple of different things.
Top Regulated Brokers
The first one, of course, is interest rates, because they have such a major input as far as pricing of gold. I am also watching this as a bit noisy, in the sense that we do have the Federal Reserve interest rate decision coming on Wednesday, and that will have a major influence on where we go next. It'll be the statement. It will be the outlook going forward, the forward guidance. Not necessarily due to any move that they make. In fact, they are not expected to do anything. It will be the statement. It will be the outlook going forward, the forward guidance.
As things stand right now, it is likely that we continue to see traders believe that December is an interest rate hike waiting to happen. So, that is still going to be a little bit of a downward-pressure situation for gold.
On a breakdown
That being said, if we were to break down below the $3,950 level, then the bottom falls apart. Perhaps we go down to the $3,600 level. I do believe, in the short term, rallies probably get faded. There are probably plenty of sellers out there willing to get involved unless the Federal Reserve suddenly appears to be more dovish.
As things stand right now, the question is whether $4,000 will hold, not whether or not you should get long. The next few days could be more noise and sideways grind than anything else.
Ready to trade today’s Gold forecast? Get the best Gold brokers here.