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The gold market had a fairly quiet session on Tuesday as the world awaits the Federal Reserve Chairman's speech on Friday. In the meantime, the gold markets do look solid and supported, but it should be stated that if the Federal Reserve doesn't give the rest of the world what it wants on Friday, we could see a selloff in gold. Most of the move would've been predicated upon the idea of further quantitative easing by the Federal Reserve, and a hint that it won't happen certainly will cause a bit of a pullback.
However, we see this market is being broke out and as long as we are above the $1640 level we consider this a valid move higher. We are looking for supportive candles just above that level in order to buy gold, and have no interest in selling at this point in time.