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Gold traders saving ammo for CPI, PPI and FED meeting this week


Gold fell on Monday in step with a stronger dollar as investors cautiously looked forward to U.S. inflation data that could influence the Federal Reserve’s timeline for easing its bond purchases. Spot gold was down 0.2 per cent to $1,804.80 per ounce. The rebound is not something unexpected. Our running Buy trade from the VIP Channel is running with +240 pips so far, as we have survived the gold tornado, which created the expected consolidation also based on Technical analysis. 

Technically, coming from the weekly chart, we’re in the corrective wave after the primary ABC and currently working on the 3rd bullish wave up. 

Weekly Pattern: “Inverted Head & Shoulders“. We trade H&S with aggressive buy at the bottom of the “right shoulder”. The second entry-level will be above the 1915 level, which is the neck-like of the H&S pattern.

The daily chart gives a perfect picture of the Wyckoff trading methodology

The price is in the Accumulation phase, confirmed by the formed “spring” on June 29 and broke the above 1794 ( “the Creek”). 

The 2nd entry based on the Wyckoff method will be when the price breaks above the current minor accumulation phase (range) 1818. 

Sentiment Analysis: 

USD is not weak; this is the only issue we see for Gold, coming after talks about the Rate Hike, which creates bullish sentiment about USD. But on the other hand, we have interesting (and expected from us) changes in the COT report. Gold changed from being more bearish to bullish because we have an exciting shift where the Large Speculators increased their Buy positions and started closing their short positions. 

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