Review:

The gold price was opened at 652.7, day high at 656.25, day low at 651.6 and closed at 653.2. It was a thin market and moving within a range 650 and 658. With no important market data yesterday and waiting for Bank of Japan announced judgement of the rate, investors made action to the market.

Technical:

Daily Chart

On the daily chart we can see SMA 10 is approaching SMA 20. Stochastic is divergence to MACD, RSI is near the middle at 51. It seems the bullish trend is building up. Once the price is stand higher than 660 the bullish trend is made.

Hourly Chart

The price is resist on 656 and Indicators are divergence. RSI is on a high range at 68.5. There is a great chance that price would drop few dollars and pull back up. Meanwhile still 650 is a support.

Market data and News:

BOJ have made the decision that keep the rate unchange at 0.5%.
FOMC meeting is on today and tomorrow. Current rate is 5.25%.

The market is seeking a direction from the statement after FOMC meeting. My personal opinion predict the rate will keep unchange as the last PPI and CPI shows the inflation still not dead, although the house lending market has start collaspe.

Data release tonight:

ICSC - UBS
Housing starts (FEB)
Building Permits (FEB)
Redbook (Mar17)
ABC Consumer Confidence (Mar 18)

Housing starts, building permits are the indicators for investors seeing how the buliding constructors foresee the building market. This is more important with house lending market starting to collapse.

Strategy:

Long Position: 652, 648
Stop Loss: 648, 644

Short Position: 656, 660
Stop Loss: 659, 663