SideNote: Gold's move upward today on the tech chart flirted with the 200 Day-Moving-Average line. Once gold clears $1,130, signaling a major "Golden Cross" A bullish sign. GRIM

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

SK Options Trading

Thursday, January 28, 2016 at 05:42AM

A dovish Fed over the coming months is likely to have a number of effects on the financial markets. Already, the statement has caused gold to rally and this is likely to continue. Just as continued, highly dovish policy from the Fed fuelled the last long term bull market in gold, the current stance is likely to push the yellow metal higher in the near term.

We believe gold is likely to continue rallying from here, challenging resistance at $1150 and from the medium term downtrend line this week. Following this we believe the yellow metal has the potential to test strong resistance at $1180 and the long term downtrend. If this level breaks, we will look to initiate aggressive longs on gold.