Gold Prices Test Key Levels After Fed Rate Hike
The gold market has been put to the test after the recent Federal Reserve rate hike. At the September 16th chart snapshot, Gold (GC) traded near $4,305, down $82.30 or 1.88% on the session.
According to the VC PMI model, the daily Buy 1 level is at $4,303. If price holds and reclaims this level, it could favor a reversion towards $4,332, the weekly Buy 1, and then $4,358.
A sustained break below the daily Buy 1 level exposes the weekly Buy 2 level at $4,254 and the daily Buy 2 near $4,218. However, these levels are not guaranteed floors.
The VC PMI framework also suggests caution on rallies below both means. A recovery through $4,358 and $4,410 would improve the case for testing daily Sell 1 at $4,443, then daily Sell 2 at $4,498. Weekly Sell 2 stands at $4,566.