Gold sold off for most of the afternoon yesterday, in anticipation of no further stimulus measures being announced by the FOMC, which is exaclty what happened. There were no further measures announced at all, which led to a mild further sell off in gold.
The market found support at 1592 and has now rebounded back above 1600 again, however we are now back in the triangle correction and it appears the breakout was a classic "bull trap".
In our view the market is now in a neutral posture and it is difficult to see which way it will go from here, though if we were forced to choose a direction it would be down. For this reason, we sit on the sidelines and wait.
The market found support at 1592 and has now rebounded back above 1600 again, however we are now back in the triangle correction and it appears the breakout was a classic "bull trap".
In our view the market is now in a neutral posture and it is difficult to see which way it will go from here, though if we were forced to choose a direction it would be down. For this reason, we sit on the sidelines and wait.