As we expected, Bernanke's statement to Congress resulted in a highly volatile trading session and a $60 trading range in a couple of hours, with gold first surging higher as the statement was seen as accommodative to further quantitative easing before dropping sharply as more detail was given during the Fed Chariman's testimony to Congress.
Many traders clearly took the opportunity to offload gold into strength in the immediate upward move, with gold touching 1414 briefly before falling away and the bears have maintained the upper hand, with further declines likely from here.
A retest of 1322 will be a critical hold for the bulls, as a break of this level will suggest much lower prices in the near future. However, if the market can hold recent support in the 1322-1337 range, a base may start to be formed from which a new rally phase could potentially evolve.
Oil also went on a rollercoaster ride, following gold higher and lower and eventually moving down, falling below support at $95 to currently trade near the bottom of the recent range at $93.35.
The dollar, predictably, moved inversely to gold and oil, first dropping, before rallying sharply to take out the closely watched 84 level. This resistance area has been held overnight and the dollar will look to head higher from here, putting further pressure on the gold price in coming weeks.
Today's video looks at yesterday's trading in more detail and our strategy for our next trade.
Many traders clearly took the opportunity to offload gold into strength in the immediate upward move, with gold touching 1414 briefly before falling away and the bears have maintained the upper hand, with further declines likely from here.
A retest of 1322 will be a critical hold for the bulls, as a break of this level will suggest much lower prices in the near future. However, if the market can hold recent support in the 1322-1337 range, a base may start to be formed from which a new rally phase could potentially evolve.
Oil also went on a rollercoaster ride, following gold higher and lower and eventually moving down, falling below support at $95 to currently trade near the bottom of the recent range at $93.35.
The dollar, predictably, moved inversely to gold and oil, first dropping, before rallying sharply to take out the closely watched 84 level. This resistance area has been held overnight and the dollar will look to head higher from here, putting further pressure on the gold price in coming weeks.
Today's video looks at yesterday's trading in more detail and our strategy for our next trade.
