Gold continues to lose its appeal for investors. Since September the rates have been in the frames of a downward trend, which intensified this month after a long phase of consolidation. The reason for the resumption of the trend was the strengthening of the U.S. dollar based on the good economic situation and the successful approval of tax reform by the Senate. We can expect for sure a further strengthening of the dollar in the near future, because today in the late evening will begin the FOMC meeting where it is expected the decision to raise the rate to 1.5%. In addition, investors expect that the Federal Reserve will announce their plans for the next year, in particular, plans about further increases in the interest rate. Investors expect that it will be raised two or three times in 2018. In addition, today the market is waiting for new data about the consumer price index in November and a speech by Donald Trump.
Today is full of news and events which can impact the rates and significantly increase volatility on the market in the evening. Most likely, the situation would be in favor of the USD. Therefore, Gold will continue decreasing and the support line can be significantly shifted down. In this situation the most effective would be the short deals on the trend. This is confirmed also with the Stochastic oscilator.
