Gold Traders Tighten Your Belts – FOMC Ahead
Arslan Butt • 1 min read
Today, the precious metal Gold is trading sideways with a lower range of $1251 and an upper range of $1258. Since May 1st, Gold investors have vanished in anticipation of the major economic events coming this week. The thin volatility is not limited to the Gold, but also to the other markets. For instance, our trading signal on WTI crude oil remained in profit, but the market reversed before hitting our take profit. Now, it's floating around its entry point.
Likewise, our forex trading signal on Gold is stuck in the sideways trap. Most of the investors have shifted towards the equity side as geopolitical tensions are on hold.
The volatility Index (VIX) has dropped to the lowest level since 2007, to trade at 10.98. The VIX index shows the confidence of investors and it leads to more investments in stocks rather than the commodity market. Increased VIX value demonstrates that investors are uncertain and that they are more likely to invest in haven assets.
Lastly, It's time for us to sit tight, as the Federal Reserve may cause unpredictable fluctuations in the market. The FOMC and Fed Rate is due at 19:00 GMT. However, we can't ignore the ADP Non-farm employment change which is due at 13:15 GMT.
Gold – Hourly Chart
Forex Trading Signal
In reference to our previous update on Gold, the trading signal is still active and is holding above our suggested take profit level of $1249. Investors are advised to stay cautious, as the market may behave unpredictably in the New York session.