Gold declined on the fears of market participants of the upcoming speech of the Fed’s Head. Investors fixed partially their positions on the eve of the event protecting themselves from the unpredictable fluctuations. Anything may happen during this speech. This will depend on what Janet Yellen is going to say about Fed’s future monetary policy changes.
There is the uptrend on the Weekly chart as the price is above the MA55. Another attempt to break through the trendline failed. This fact may lead to further decline as the price is unable to cross the important level.
There is the downtrend on the Hourly chart as the MA-channel goes downwards and the price is below the MA55. We advise to wait until Fed’s Head speech ends before taking any decision. There is a probability of high volatility. It is better to enter trades close to the balance line.
XAG/USD broke through the lower side of the range on fears. Investors are afraid of the upcoming event and all trades were fixed.
There is the uptrend on the Weekly as the price is above the MA55. XAG/USD went down to the lower side of the19,30-20,40 range and crossed it finally today in the morning.
There is the downtrend on the Hourly chart as the MA-channel goes downwards and the price is below the MA55. We advise to wait until the end of today’s event in order to take any further decision. You may open trades if the price goes closer to the balance line.