Does Gold Know Anything About Upcoming Fed Decisions?
October 31st, 2007WARNING: This is not a recommendation to buy, sell, or hold any financial instrument.
Chock this one up as something interesting to watch, one way or the other:
I was watching spot gold prices continuously before the last Fed announcement. Gold rallied before the announcement was made public. I thought: “They” knew that the rate cut was coming for sure. And then the Fed cut rates.
I’m watching gold prices, just like before, and what is gold doing before the Fed announcement this time?
Selling off.
How many thousands of articles insisted that the Fed would cut rates for sure this time? About the same number as last time. But gold is taking a bit of a dump here.
It’s interesting, isn’t it? It’s almost definitely worthless for trading purposes; BUT if the Fed doesn’t cut, well, that’ll be very interesting, especially for gold longs short term.
The order flow is very orderly and gold has been in a neatly defined downward channel for the last several hours. It’s under 785 now, which served as a pretty good support. However, the longer interval, intraday uptrending channels are intact, despite the recent selloff. I’m drawing a key support at $765. Under $765, she’s breaking down lots of different ways. Overhead resistance is $795.
Get your popcorn ready. It’s make or break time.
@Kev,
“Get your popcorn ready. It’s make or break time.”
Man, if you say that one more time… 🙂
These days it seems as if just about every day could be the day. I don’t think my heart can stand it much longer. I just wish these assholes would get on with it so I could enjoy the fireworks. I’ve bought my ticket, I’ve paid the price. Goddamn it, let’s get the show on the road. Let’s see some real action!