Gold broke July's support at 1076 then bounced back to 1083. Draghi's comment unavoidably rose expectation on ECB's possibility to widen QE.

Gold Price On November 13th, 2015: Slumped, Broke July's Support At 1076','Gold slumped further responding to Draghi's statement in regard with concerns over growth and inflation dynamic. The price broke July's support at 1076, then bounced back to 1083. Draghi's comment unavoidably rose expectation on ECB's possibility to widen QE, and significantly boosted USD.','

Dear Traders,

Gold slumped further responding to Draghi's statement in regard with concerns over growth and inflation dynamic. The price broke July's support at 1076, then bounced back to 1083. Draghi's comment unavoidably rose expectation on ECB's possibility to widen QE, and significantly boosted USD.

Interestingly, Draghi mentioned about the waning inflation in particular. Yet, inflation data from the last six-months implied an increasing tendency; this led many people to believe that Draghi has been aware of something that is not reflected on the actual data. The only obvious thing is that ECB's QE 1 trillion program failed to reach its target. Draghi also insisted that the central bank would be ready to act if inflation keeps worsening. Apparently, bond buying is still being considered to be included in QE's widening scheme.

Meanwhile, latest series of US economy data releases seem to be insufficient to support 2 percent inflation target from Fed. With this kind of condition, it is safe to think that Fed hasn't acquired the needed base to increase rates next December.

 

Technical Analysis

This H4 chart below shows one of the possibilities from Elliot Wave to help you make your trading decision today.

Gold

 

Have a good trading... Be Happy!