Gold analysis
and Forecast after the Fed decision
Yesterday after the unexpected Fed decision
to keep its interest rates near zero and its monthly purchase program to $85
billion, Gold rose significantly reflecting the metal's appeal as an
inflation hedge. The decision has pushed the dollar down against a basket of
major currencies and against precious metals, especially the Gold.
Furthermore, the great bullish candle on the
Daily chart mirrors the impact of Fed decision on the gold prices. The Gold/USD
pair has succeeded to bounce back to $1370 per ounce after it has breached down
the ascending channel formed in the previous days. This
increase confirmed the Pullback of the prices that we
have mentioned in our technical analysis. We then expect that the Gold/USD
will resume its bearish trend, and will decline on the short term trading
to $1240.
