from Dan Norcini:
Fed Chairwoman Janet Yellen was out today and sounded an upbeat assessment on the US economy, faulting the severely cold winter months earlier this year on the spate of poor economic numbers for much of Q1. Traders took that as a clear sign that the Fed is going to continue winding down its QE program, bringing it to an end later this year. She did however emphasize that it would be ” a considerable time” before any interest rate hikes would occur after QE ends.
You’ll note on the gold chart that once again gold has failed to penetrate an overhead resistance level and is now retreating lower. It continues to remain mired in this range trade. The ceiling is now just shy of $1320 with the floor near $1280 and extending down towards $1265 or so. Any CLOSING BREACH of $1280 and the odds will favor a new leg lower in gold. Bulls are once again on the ropes and will need some flare up over in Ukraine to bail them out.
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