Gold under unprecedented Volatility

Technical analysis: Hourly 4 chart’s Ascending Channel was invalidated downwards throughout yesterday’s session as despite the very Low GDP / Late Fed speculation, DX managed to lose more and reverse Intra-day (typical pricing of Support and Resistance zone). Gold is heavily pressured also by Bond Yields (# +1.47%) which seems to be Trading on relief Rally on Daily chart aswell on healthy Ascending Channel ready to pierce local High’s. However I do expect situation to change and I switched my point of interests on other assets and their outlooks, by my estimation they will add more Buying pressure on Gold. If by tomorrow #1,782.80 holds on Weekly chart (#1W) then I expect Gold to resume its Medium-term Bullish trend. Daily chart is now slightly Overbought and on High Volatility variable, but I will not take that into account. I have added to my Longs / Buys as at least the Gap to #1,800.80 - #1,808.80 is expected to be filled. Always keep in mind that Trading is not a #3 - #5 point movement but is about managing the positions when Short-term movements go against you. I remain Bullish expecting #1,815.80 - #1,827.80. Market will remain most likely Neutral ahead of #2 macro-economic High impact announcements (CPI and Fed). I do not believe however that Fed will deliver #75 bps rate hike, I expect rate to be unchanged and dovish stance which may add significant Buying pressure on Gold. Anything beyond that is pure speculation. I finished the session without any orders and another market closing below #1,782.80 Support invalidates Buying potential.


My position: As I have closed my order near breakeven levels throughout yesterday's session, Trading current Volatility is equal to non-rational rather than optimized Trading position. Gold will remain under unprecedented Volatility until both Fundamental High-impact announcements are revealed, as Gold's Price-action is closely following DX chart (which lately delivers nothing but side Swings). However Gold's Medium-term remains merely Bullish, and #1,772.80 - #1,775.80 Support zone can be used an re-Buy zone towards #1,800.80 benchmark (if Support zone breaks however and market closes below, expect #1,727.80 - #1,733.80 Support zone in extension to be tested). Regarding Inflation figures event ahead, I do expect softer numbers which may maintain Bullish bias on Gold. My practical suggestion for Short-term Traders to keep away, at least for current session.