Gold started selling off sharply as soon as the FOMC statement was released, falling through the bottom boundary of the triangle around 1350 on confirmation that tapering of QE is expected to commence this year, with a complete exit from QE possible in 2014.
This morning, the decline has accelerated and gold has tumbled lower, crashing through support at 1338 and 1322 with relative ease and dropping as low as 1304.
We expect to see gold trade below 1300 today and we could see much lower prices now that 1322 has given way as we anticipated.
The dollar is moving higher on the back of the FOMC statement, as an end to QE will be strongly positive for the dollar, particularly as Japan and Europe are still expanding their balance sheets.
Oil and equities have fallen in a "knee jerk" response to the statement, though we expect both to continue moving higher after these initial falls on the basis that the US economy is recovering relatively more strongly than any other Western nation.
Today's video looks at the price action immediately following the FOMC statement and our strategy for our next trade.
This morning, the decline has accelerated and gold has tumbled lower, crashing through support at 1338 and 1322 with relative ease and dropping as low as 1304.
We expect to see gold trade below 1300 today and we could see much lower prices now that 1322 has given way as we anticipated.
The dollar is moving higher on the back of the FOMC statement, as an end to QE will be strongly positive for the dollar, particularly as Japan and Europe are still expanding their balance sheets.
Oil and equities have fallen in a "knee jerk" response to the statement, though we expect both to continue moving higher after these initial falls on the basis that the US economy is recovering relatively more strongly than any other Western nation.
Today's video looks at the price action immediately following the FOMC statement and our strategy for our next trade.