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But what started as a pullback quickly turned into a bearish trend, and when the Fed spoke in the middle of June Gold prices plummeted down to fresh monthly lows.
But the sell-off stalled at a big spot on the chart, helped along by a couple of confluent Fibonacci levels and just above the prior neckline from the double bottom formation that had built in March.
After a riveting move last week Gold prices put in a relatively quiet outing this week, sticking within a range formation that I had looked at in the Thursday article on Gold.
There’s both a bullish trendline and a 38.2% Fibonacci retracement from the 2018-2020 major move that could support such a thesis, but this would need some near-term agreement in the not-too-distant future given how aggressively sellers came in last week, before that door for bullish trends may reopen.
It was but one simple signal taken from the dot plot matrix that the bank may be looking to raise rates a little faster, and Gold prices plummeted and didn’t stop until a big spot of support came in to stall the move.
Judging by Gold’s price action, there appears to be little hope from market participants that this will be the case and that’s enough to at least offset the above synopsis of the longer-term theme.
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