AFTERNOON UPDATE (POST FED BREAKDOWN?)

 

The Fed left interest rates unchanged- no surprise. They noted inflation was below their 2% goal. That could open the door for a rate cut later this year.

The dollar declined after the news. Gold turned positive momentarily, but prices may be reversing back lower.

 

The 4-hour gold chart remains in a descending wedge. Prices would have to break and stay above $1300 to recommend a 6-month low.

The 4-hour silver chart is in a similar formation. Prices dropped to test the lower border earlier today and remain there. Slipping below $14.60 would recommend a breakdown.

-GDX- Miners officially closed the January $20.59 gap. Prices reversed higher after the Fed decision. Today’s and tomorrows close will help us understand the short-term trend.

I’ll try to update again around 3:30 PM.