Gold Is Very Bearish

As it could have been expected, the announcement that FED was hiking the interest rate had major effect on Gold and the precious metal fell from $1,163 until it found some resistance at $1,122, where it formed a hammer candlestick on the four-hour time-frame before it started retracing. Gold is currently testing the resistance at $1,136 and a breakout above that level will likely lead to a further move to the upside towards $1,145 - $1,150. All that said, the precious metal is still very bearish and the retracement is probably just temporary. Once that is over, it will likely continue dropping towards $1,100, and if it breaks out below that level it could keep falling towards the previous low at $1,046.