Gold Prices Rebound After Yellen’s Testimony Concludes
- Gold Prices Rebound after Fed Chairs Testimony
- Next Support for Gold is Found Near $1,317.58
- What’s next for Gold and the commodity market? Learn more with our Trading Guide
The price of Gold is rebounding this afternoon after posting daily lows at $1,317.89. This morning’s decline was coupled with a rising US Dollar as Fed Chair Janet Yellen testified before congress. Yellen’s testimony yielded little in the way of future policy, but the Chair did note that the Fed has no “fixed timetable” for adjusting their current stance on monetary policy. With little information being yielded on the fundamental front, traders may turn to short term technical values to help determine the direction of Gold Prices
Gold Price, 1Hour
(Created with Tradingview Charts)
In the 10 minute graph below, the price of Gold can be seen rebounding from its daily lows. The Grid Sight Index (GSI) has interpreted this move as a short term uptrend as the commodity has printed a series of higher highs in the last 2hours of trading. After reviewing 25,971.645 pricing points, GSI has indicated that price action has continued to advance by $2.20 or more in 65% of the reported 17 historical matching events. If Gold prices trade through the first historic distribution at $1,325.30, it may suggest a broader retracement for the commodity. A move through this value may then expose the standing daily high of $1,327.41.
Alternatively, GSI has indicated that prices have declined by $4.70 or more in 18% of the 17 historical matches. This places the current first bearish historical distribution at $1,318.40, which is just above the daily low. A move through this value would suggest that Gold prices are prepared to trade lower. In this scenario, traders may look for the pair to challenge daily lows, and the next value of support near $1,317.58.
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(Created using Grid Sight Index)
---Written by Walker England, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.