By FX Empire.com
The gold markets rose on Wednesday as traders continue to prefer safety over fiat currencies. The meetings with the Federal Reserve added to the speculation that there could possibly be more quantitative easing if needed. This of course would weaken the Dollar, which would strengthen the gold markets. Also, with Europe being one big massive breakdown – gold is an attractive bet at this point.
The hammer printed on Tuesday showed support at the $1,700 level, and we broke the upside of that range – which is a buy signal. We prefer going long at this point, and don’t feel comfortable selling gold.
