Gold's Short Lived Rally Is About To End
Jay Goldman | Mar 25, 2015 07:07AM ET
Since the FOMC statement came out on the 18th of March, the price of gold has shot up by almost $50 per ounce, but this mini rally is just about to hit an abrupt end.
Gold rallied on a more Dovish Fed statement than expected which outlined an Interest rate hike due later on in the year than most Trader's were looking for. This was a calculated move by the Fed, in order to control the the dollar's meteoric rise in value over the last few months, which could possibly have a negative impact on the US economy.
The fact remains that fundamentally the US dollar is still going to keep rising, although in a slower pace than before. The main reason gold will be trading lower in the next week is the fact that the US Non Farm Payrolls are scheduled for the 3rd of April, and after crushing expectations in the last two months, no one will be willing to go against the dollar this time and every Trader holding to gold long positions will be looking to unload before that.
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