With the expectation that the Fed will hike rates by 0.25% or 0.5% sooner than expected, the dollar has strengthened substantially. The dollar index went up from 90 to 92. This has shaken many instruments including gold.
Gold has broken its last higher low which could indicate that the short-term uptrend has ended. For now there two green areas which might be the targets of bounces. These areas are confirmed by Monday’s closing above the previous candlesticks. The potential for a pullback is there, but the question is how far it might go.
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