The dollar also had a roller coaster ride, initially falling sharply on the FOMC announcement, presumably as there was no mention of a tapering timetable, before reversing and moving higher. This morning, the dollar has surged higher and is trading back above 82, pressuring gold.
With a raft of further data releases today and the Non Farms Payroll (NFP) number released tomorrow, there could be more volatility in store for gold this week. Despite yesterday's action, the market remains within a trading range broadly between 1300 and 1350 - a break either way out of this range should see a strong trending move develop.
Equities remain strong, we continue to assert that a major rally in gold will not develop until equities correct meaningfully and the risks for gold remain on the downside.
Today's video looks at yesterday's action in detail and our strategy for our next trade.