In the past 48 hours, Gold has seen wild sideways movements with total volatility of more than 300 points within the 4000–4132$/ounce range.
The main reason for this volatility comes from the FED’s recent statements and meeting minutes, as the FED is currently divided into two hawkish groups regarding whether interest rates should be cut in December.
Most FED members believe this is unnecessary. However, some officials still think rate cuts are needed but at a different time, not in December.
This hawkish stance has confused investors due to the mixed statements, causing continuous sharp movements in the market.
Therefore, in the short term, Gold will continue to face sudden strong swings of 50–80 points within short periods.
Technical analysis:
In the short term, Gold may correct back to the 4000$/ounce zone once again before rebounding and moving sideways within the wide 4000–414x$/ounce range.
If it does not correct and instead breaks out of the short-term descending channel, it will rise directly toward the 414x$/ounce level.
Trí Hùng
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