Do Fed rate decisions affect the price patterns for gold? (Technical analysis)
Gold price, DJIA and Fed funds
(Annotations by TechnicalTraders.com, Chris Vermeulen)
“We have already experienced the early rally phase associated with the initial Fed rate increase. Now, we are in the contraction price phase where a bottom will set up – which may take many weeks or months still. We are waiting for the Fed to “flinch” and begin to decrease rates. That will start the new bullish price phase for gold and silver – and possibly send us into another parabolic price phase.”
USAGOLD note: Important analysis from Chris Vermeulen…… He makes some very logical arguments supported with data and charts like the one above.