By FXEmpire.com
The gold markets fell for much of the session on Wednesday, and fell even further after the Federal Reserve announcement. However, Dr. Bernanke managed to calm fears of a lack of easing by suggesting that the Fed would get involved if the markets fell too far, or that the economy in general started to fail. Many traders think this means a possible new round of easing in the future, and as a result we saw this market bounce hard to form a hammer.
It is worth noting that the market is closing above the $1,640 level again, and with that candle being a hammer, it looks as if we haven’t decided much to be honest. The $1,680 to $1,700 level above should continue to be resistive, so consolidation may be the short-term future of this market. With this in mind, we are buying a break of the highs from Wednesday, but only for about a $30 gain. We are not selling at this point in time.
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Originally posted here
