Gold bugs bugged out on FOMC outcome and soaring dollar
|Yesterday, Gold was closing at $1,309, today, Gold is making fresh post-FOMC outcome lows of $1,296.05.
DXY +92%: shorts repositioning in a major way on bullish Yellen / hawkish FOMC
Until today, Gold was in a perfect negative correlation to Wall Street, where investors were searching for a yield and moving away from the safe havens that had otherwise benefitted so well from the N.Korean and other geopolitical risks around the globe.
Plotting the dots: Fed generally more upbeat - ANZ
However, today's price action took both US stocks and gold in the same direction when the dollar rallied and stocks possibly feard subsequent prospects of higher rates on the back of the FOMC's announcements today that were generally more upbeat sending Gold to the lowest in three weeks and concerning to the speculative bulls.
FOMC is still aiming for a third hike before the end of the year - Rabobank
Gold levels
Technically, Gold has recently taken out a number of key technical levels, including the rising channel's trend support line, (23.6 Fibo), around 1323 and today, the 38.2% Fibo level of the rise measured between 1204.81 to 1357.53 at 1299.20. Next target is the 1281.17 support level.
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