For this moment, this is my sight for Gold.
From the daily chart above, we can see that for the last 2 days, gold has been trying to break the daily resistance but it fail. It shows that the bull power is still not strong enough to push the market higher. Personally, I think that the upside price movement for this last 2 days is more caused by the bad result of Pending Home Sales news.
It was (Actual Forecast Previous) = -5.6% 0.5% -1.6%
Let's zoom in...
From a bigger look of the same daily chart, we can see that for the last 2 days, gold has actually been trying to break the daily resistance but it seems that the power is not big enough. It makes the tails slightly over the resistance and make the body under it. It is really obvious the market is reluctant to move the price to any direction.
From my sight, I think it also means that more likely gold will go downside. This is because there are 2 resistances which in my opinion are strong enough since both resistances has never been broken before.
Let's see a closer look
From the H4 chart above, it's clearly that gold had violated the support and tried to go back into its uptrend channel but then it failed. We can see very clear that the Green Resistance that holds gold from making higher price recently. This is for me a sign that the power of bull is diminishing. But it also gives a clue that the bear is reluctant to take over the power.
Resumee:
Technically, I see that gold more likely will have a downside move because gold has 2 strong resistances at this level of price.
But, considering that FOMC Statement will be announce on Wednesday, there is a big chance that bull power will be back in the market very sudden. Why? because I have a strong feeling that the Fed will not announce any significant change of its policy. It includes the postpone of tapering. If there's no tapering, than it gives gold more advantage and push it higher. But this is only guessing. Don't trade just on it. Do your analysis.
GG - 2013.10.29
