Mid-week was eventful for Gold as displayed in the blue shaded box on the chart below. On Wednesday, Fed Chair Powell was re-elected by President Biden to serve another term. Gold reacted bearish on the back of this news as Powell is very open to raising interest rates. Raising rates is a monetary policy tool to attempt to curb inflation – which takes the ‘inflation hedge’ value away from Gold for the time being.
Regardless of what happened fundamentally during the week, price moved from a bearish trendline on the daily featured timeframe, which coincided with the news result. The market has been respecting the ascending triangle thus far, and where we currently sit with price is extremely important as the breakout could determine momentum going forward.
“It’s not whether you’re right or wrong, but how much money you make when you’re right and how much you lose when you’re wrong.” – George Soros