As we expected, Gold digested Wednesday’s gains during Thursday’s session, trading in a smaller range from 1358 to 1375 throughout much of the day. After compression, you get expansion. After price expansion, get get compression. Right now, Gold is compressing ahead of the next move.
Whoa! Now THAT was a great Fed day! While all markets rallied big (except the Dollar Index), Gold had BY FAR the biggest day. Last night I wrote that I thought we’d see a major breakout opportunity in Gold, but I was leaning more to the downside. However, Gold took out the 1324 level that was important for the bulls, which ultimately paved the way to a massive 76-point rally.
Wow, what a day in the market! The Fed’s decision to not begin tapering was huge for the market today, as news of the decision led to massive rallies across commodity classes, including Crude Oil, Gold, FX futures, and of course the Index Futures markets. I’ve got some live analysis and trades for you below, in addition to some great calls in Gold, and also a FREE Webinar. Read on.
Another day, another great reaction to our key program levels in Gold! The 1324 pivot was THE line in the sand, and the algos hit it hard twice this morning, with the second test leading to a great sell-off to 1305.80 — a move of 18.20 points! At $100 per point, that move is worth $1820 per contract traded. Not bad for a day’s work.
On September 11 I wrote, “if Gold gets a breakout from the current range, look for price to not only trade a range that equals its average of 26 points, …
