Gold futures reached a high of $1442.90 on Tuesday. Prices slipped after the Fed walked back some of the markets rate cut expectations, likely profit-taking. Currently, gold is testing the first support level between $1400 and $1404. To maintain the potential for a runaway move, I think that area needs to hold. If it fails, the next significant support level arrives between $1380 and $1385.
1-HOUR GOLD CHART
For gold to extend its gains, the dollar needs to decline. Prices appear to be consolidating just below the 200-day MA in a possible bear flag. If correct, then we should see the next leg lower begin within the next few trading days. Closing decisively above the 200-day MA would be a short-term negative for gold.
DAILY DOLLAR CHART
