Gold Extended Losses After The Fed Ended Its Bond-Buying Program
Capitol Academy | Oct 30, 2014 03:48AM ET
The Gold dropped sharply and today remains trading near it slowest level in 3 weeks, after the U.S. Federal Reserve ended its bond-buying stimulus program and , Janet Yellen has expressed her confidence in the economic recovery, which decrease the safe-haven demand of the yellow metal.
The Gold declined yesterday hitting most of the expected targets that we have mentioned in our technical analysis, and concerning the next trading sessions, we expect further decline of the prices toward $1203, then $1198 which will represent good opportunities to enter buy positions, as the strong support level of $1198 corresponds to the Fibonacci level 9 %, then we expect that the Gold will rebound as a correction step toward $1206, then $1214.
However on the medium term trading, the main trend of the Gold would remain bearish, and we expect further decline toward the key expect target of $1154 during the next months.
So we recommend dour dear trades to seize the opportunity of nay rally of the prices to enter sell positions.
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