FOREX Chart Of The Day: Gold Long Idea

The GOLD price has broken lower out of a 3 week consolidation, but will the price go lower from here or does this offer a long opportunity?

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Gold Analysis

The Federal Reserve hikes interest rates by 75bps above the forecasts which showed a 50bps. This was in direct response to the latest inflation data which showed another increase. The Federal Reserve Chairman Jerome Powell stated that they thought they would have seen inflation start to flatten, this was not the case. The USD reacted negatively to the news release which has seen the price of Gold beak through the lows of a 3 week consolidation.

The price breaking through these lows would see many traders try to sell the market in line with the breakout, however, if the USD is weakening we should see the market move higher. This could offer a long opportunity, we often see when price forms a range, the price breaks but ends up trading back within the range and moving towards the highs. If the price does trade back within the range we could look for a retest of the lows for a long opportunity to the highs of the range.

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About The Author

Jonathan Kibbler

Jon Kibbler, our Senior Market Analyst, boasts over a decade of trading experience. He specializes in dissecting the intricacies of financial markets and sharing his expertise with precision. Jon’s insights have been featured at renowned events and platforms like Coindex, Forex Analytix, and Forex.com.

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