The yellow metal dropped a little today, but is premature to say that we’ll have a larger drop on the short term. Gold is on a declining path on the short term, is trapped within a down channel and will drop further if the USDX will have enough directional energy to increase again in the upcoming period.

Gold rallied after the FED’s decision to hike the interest rate, the dollar has depreciated significantly versus all its rivals, but this could be only a temporary drop.

The Gold dropped a little also because the Aussie has lost some of the yesterday’s gains versus the greenback. The Australian data have come in worse than expected in the morning, the Unemployment Rate was reported at 5.6%, higher versus the 5.5% estimate and versus the 5.5% in the former reading period, while the Employment Change increased from 12.5K to 17.5K, but has failed to reach the 19.8K estimate.

The rate should be driven by the fundamental factors in the upcoming hours as the US will release more economic data. The Unemployment Claims have disappointed earlier because have increased from 226K to 229K jobs in the previous week, even if the traders have expected to see a drop 225K. The greenback received support from the US HPI, which has increased by 0.8%, beating the 0.4% estimate and the 0.4% growth in the former reading period.

The rate increased sharply in the yesterday’s trading session and was almost to reach the outside sliding line (SL). Price dropped today, but we cannot talk about a larger drop as long as the USDX continues to trade in the red.

Maybe will be better to stay away from gold because we don’t have a clear direction, but I really hope that we’ll have a great trading opportunity soon.