The Fed implied a “cautious” (i.e.-slower than expected) pace of future rate hikes, which has so far resulted in further losses for the $USD, helping to confirm my call for a reversal in the US Dollar (which actually topped just 3 days after that call from March 10th). With the charts already clearly indicating a likely pullback in the dollar, my expectation is that this initial reaction, unlike many of the initial post-FOMC announcement reactions, will stick, sending the $USD lower in the coming days & weeks and most likely putting a strong bid underneath gold & the gold/silver mining stocks, which from what I could gather recently, were written off for dead following the ugly March 6th gap below support.

 

Big bullish reversal stick on GLD so far, undoubtedly roasting many of the shorts that took that breakdown to be the final death knell for the shiny metal but admittedly, there is still quite of bit of technical work to be done to help solidify the longer-term bullish case for gold. One of the most important technical obstacles will be to take back the 1180 ($GOLD)/115 (GLD) levels, followed by the 117 level in gold. I still plan to follow up with some near-term & potentially longer-term targets for the most recent GLD long. More commentary & targets to follow once the dust has settled from today’s FOMC announcement.