Gold Price Extends Break Down, Dollar Extends Breakout

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The end of QE is bullish for the Dollar. Note that the Fed has ended QE and the European Central Bank (ECB) is threatening QE. This is Dollar bullish and Euro bearish. The US Dollar ETF (UUP) held its support zone and surged to affirm support at 22.60. The Euro Index ($XEU) held resistance and plunged below 127.

dollar_september_october_2014

 

Gold gave us a little preview of the Fed policy statement by breaking down last week. This break held as GLD consolidated in the 118 area. GLD continued lower after the Fed announced the long awaited end to quantitative easing, which is Dollar bullish and bullion bearish. I will not move key resistance to 119.

gold_silver_september_October_2014

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