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9 Oct 2013
Will the intuitive rise in gold occur with Yellen’s appointment?
FXstreet.com (Barcelona) - Intuition says Yellen in, rates down, DXY down and gold higher. Will gold play along or will it keep disappointing the gold bugs?
Gold has shown little reaction to the Yellen news thus far – a disappointment already?
A “whopping” $3 rally in gold occurred after the news hit the wires of the pending announcement of Janet Yellen as Ben Bernanke’s successor as the Chairperson of the Federal Reserve. That simply cannot be encouraging for the gold bulls out there. There is a lot of speculation as to why gold and silver have continued to languish despite the recent weakness in the greenback. Whatever the reason, if the metals cannot rally now, under what conditions will they be able to rally?
Technicians calling for more downside in the yellow metal
Elliott Wave technicians say that gold appears to have completed wave “(v) & i” to the downside at 1276 last week. Under that scenario, gold should bounce / correct at least up to 1337 and maybe up to 1355 or 1374. It just isn’t showing any desire to bounce yet – even with the recent DXY weakness and Yellen news. Once the bounce runs its course, however, the technicians have been and still are calling for more downside for the yellow metal – perhaps reaching as low as 1065.
Gold has shown little reaction to the Yellen news thus far – a disappointment already?
A “whopping” $3 rally in gold occurred after the news hit the wires of the pending announcement of Janet Yellen as Ben Bernanke’s successor as the Chairperson of the Federal Reserve. That simply cannot be encouraging for the gold bulls out there. There is a lot of speculation as to why gold and silver have continued to languish despite the recent weakness in the greenback. Whatever the reason, if the metals cannot rally now, under what conditions will they be able to rally?
Technicians calling for more downside in the yellow metal
Elliott Wave technicians say that gold appears to have completed wave “(v) & i” to the downside at 1276 last week. Under that scenario, gold should bounce / correct at least up to 1337 and maybe up to 1355 or 1374. It just isn’t showing any desire to bounce yet – even with the recent DXY weakness and Yellen news. Once the bounce runs its course, however, the technicians have been and still are calling for more downside for the yellow metal – perhaps reaching as low as 1065.