The latest developments
Gold has been trading in recent times and after its rise in an accidental trading lake that exhausted all traders, forgetting that the rule that states that the week preceding is an occasional trading week does not take from it neither right nor wrong except one evidence, which is your guide to survival…
The norm for the Fed and gold
Our basic rule is that gold is inversely proportional to any case of raising the interest rate, gold will decrease, and if the interest rate is fixed, it will decrease as well, while in the case of lowering the interest rate, gold will rise, but unfortunately this rule does not apply to gold in the event that the Federal Reserve day precedes unemployment indicators to become the rule As follows:
“In the event that there is evidence of inflation, even if it is weak, but it is not less than a point and a half, then raising interest will not succeed in curbing inflation, and this will appear in the unemployment index, which will raise gold to the top.”
Therefore, gold at the present time is awaiting in the evening the Fed’s decision regarding the interest, and this is according to analysts’ expectations that the interest will be raised and thus gold will be reduced, so the exact opposite will happen, as I frankly before I analyze in the evening of any day, I investigate the market forums to see what you are talking about. From it, I move away from the expected momentum and think in a completely different way.
Therefore, it is highly expected that the interest rate will be fixed, which will lead to an occasional movement of gold, on which a decision will not be taken unless gold is closed according to one of the following scenarios, because reducing the interest rate in light of inflation is relatively unlikely, and what is possible is either a raise or a fixation.
Confusion makes you face no more scenarios
When you find that all of this data puts you into a big whirlpool of conflicting opinions, you have to stick to the two most important rules, no more. First, wait for the market to absorb the news, i.e. wait until the four-hour candle closes following the news. Second, rely on the closing price.
First scenario
In the event that the price closed above 1925, with a high volume, not an excessive rise, then the price will head towards 1950, then 1980, and the scenario will be confirmed if interest rate fixing is lifted, and the next day unemployment rates will be high.
The second scenario is if the price closed below 1925, with a low volume, then the price will head towards 1865 and then 1850, and the scenario will be confirmed if the interest rate is raised and the next day the unemployment rates will be the same without any increase.
Technical analyst opinion
In conclusion, dear trader, the confusion of gold and the Fed I see affects all traders without any exception, and on this basis I tell you that trading does not involve risks, but ignorance of the rules is what carries risks, especially since a large percentage of traders depend on the technical indicators that I see in one way or another In other words, it was designed for the market maker to win, not you.
Don’t forget to choose your recommendations provider carefully…
Analyst: Omar Sayyah
For more, do not hesitate to contact..
Twitter: @SyyahOmar
Telegram: @OmarSyyah