Happy day for gold bulls as Yellen's remarks played in their favor. Though we missed the massive move, our gold trade signal hit take profit a few minutes before the surprise testimony. Gold soared by 121 points after placing a low at $1213. The Fed Chair Yellen's testimony was dovish and investors backed away from the greenback and ongoing political concerns in the United States.

Yellen Is Back Again

The game isn't over yet. Guess, who's back? It's the queen of market volatility, Fed Chair Janet Yellen.  She is due to testify at the Semiannual Monetary Policy Report to the Senate Banking Committee, in Washington at 14:00 (GMT) for the second day.

Forex Trade Signal – Idea

Now that gold is between the lower and upper ranges of $1217 to $1227, we can enjoy choppy trading with a very low trading volume. Because gold is consolidating at $1223 and the stop loss will be huge. In my opinion, we should give it some time to settle at a certain level before placing any position.

Gold – 4 Hours Chart – Bearish Channel

Technical View of Gold

On the technical side, I see a strong resistance at $1225/27, which can push the metal lower. So should we place a sell? Nope, I never said so. Because of the 4-hour chart, gold has a bullish crossover on the 50 periods moving average. I must suggest you refer to FX Leaders trading strategy on moving averages to get a better understanding of how to use moving averages to your benefit.  

Fellas, do you remember the bearish channel which I explained yesterday? Gold has already traveled from the lower edge of $1214 towards the upper corner of $1227. That's the crucial point the begs our attention, a break above this level can push the metal up to $1239.