By FXEmpire.com
The gold markets fell for most of the session on Wednesday as the Euro continues to fall. The strengthening of the US dollar works against the value of gold as it takes less Dollars to buy gold in this environment. The $1,500 level is still our mark for a longer-term trend change, so we aren’t ready to sell yet, but the market is looking very weak at this point. The Federal Reserve suggested in its FMOC minutes during the session that “several of the members” supported QE3 if the economic conditions warranted it. This could supply gold with a bit of cushion just in time. It should be noted that the market did in fact bounce in the afternoon US time. With this being the case, a break of the top of the Wednesday range could have us buying as we think this market has fallen too far, too fast.
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Originally posted here
