đ Consolidation before a strong movement. But where to?
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GOLD continues to consolidate and we have questionable preconditions that indicate both a possible fall (fundamental background) and growth (technical background)
Gold is holding back after Fed Chairman Powell's speech:
- The US economy is in remarkably good shape.We are moving very quickly with rates.
- ÂĢI am very pleased with where monetary policy is right now"
- Unemployment is still very low and progress is being made in fighting inflation
- The focus remains on the jobless claims data and NFP at this time
Technically, the focus is on consolidation in a locally rising channel format. A price exit from the channel in either direction may be accompanied by a strong impulse.
Resistance levels: 2655, 2660, 2688
Support levels: 2636, 2620, 2605
Two scenarios due to mixed and stalemate situation:
1-black: Powell commented on the situation as strong enough for the US market, accordingly, gold is forming a consolidation in a flag format, which is technically a pattern for a continuation of the fall.
2-blue: On D1 there are prerequisites for local growth. If the price breaks 2655, then 2660, the growth may continue to the zone of interest 2688.