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Gold price dip coming, S&P 500 higher on softer sounding Fed?

Commentaries & Views

In my opinion, the daily gold chart is looking increasingly ripe for a more noticeable correction. If it materializes, this could be the dip sidelined bulls have been waiting for. For me, the most likely zone for price to find support is the yellow rectangle shown below.

So far, the long trade in the S&P 500 is playing out as anticipated.

The FED will not surprise markets; that is - the overwhelming probability is rates will stay where they are today. The question is: will Powell come off to the market as hawkish? Or “hawkish light”?

I would speculate that if gold is looking weak, then the counterintuitive narrative for a downward price move in gold is a less hawkish sounding Powell – That would also probably be stock market positive.

Of course, I’m ready to be wrong.

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