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Why is a higher time frame analysis important?

Why is a higher time frame analysis important?

While we as traders most of the day focus only on making money, we forget to check where we are in the bigger picture of our chart.

These days I've seen a lot of ideas around the trading community that gold is going to crash. Gold will move down only because the FOMC is going to raise interest rates.

Is it true?
Part of it yes. The other part is how we all interpret news events. How do news websites interpret the news, and more importantly where is the price on the chart?

Technical Analysis:
As we can see, in a period of 5 months GOLD lost almost 18.80% of its previous value.
In fact, the price is testing a very old support zone around 1680.

This is a very old support area that was first broken on April 20th and tested several times. Thereafter in March-21st, August 21st, and during the previous week in late July-July 22nd.

As we can see the price increased by +3.88% and this is a quick price reaction.

I am looking for the price to reach 1783 and 1830 over the next few weeks.

Thanks and good luck!