Gold shot up yesterday on the back of a shockingly poor GDP number from the US (-0.1% vs 1% expected), though found resistance around the 61.8% retracement of our Wave A decline at 1682.
The FOMC statement was a non-event, with nothing new to report and the muted reaction of the gold market reflected this.
We are always suspicious of knee jerk reactions to news events - since the move upwards, which we believe to be the end of a Wave B rally, gold has since fallen back to 1674 and looks likely to fall further from here in a Wave C decline.
Both oil and equities have been rallying strongly lately, with the dollar under pressure. We would not be surprised to see a correction in both oil and equities and a dollar rally from here, which would likely see gold.
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