Gold Hits Target $1258 – Get Set For New Entry


As mentioned in my earlier update, the precious metal traded exactly as I predicted in the US sessions forecast and hit the target level of $1258. The Fed gave us three take profits in gold, EUR/USD and Nikkei and one stop AUDUSD. 

Today FX junkies are likely to wait for a slight retracement in gold before placing any orders. The global markets are already at their peaks and lows, waiting for traders to close their position to take profit.

Gold - Hourly Chart - Overbought ScenarioGold – Hourly Chart – Overbought Scenario

In the hourly time frame, gold is trending upward after breaking above $1257, the double top resistance level. But, the leading indicator, Stochastic, is trading at 81, signifying that the buyers are exhausted now, and the sellers may take control for a short period.

 

Can We Sell Now?

I don't think so, as gold traders often ignore the overbought situation and prefer to trade fundamentals. The central bank Federal Reserve left interest rates unchanged at 1.25% and gave a dovish policy sentiment. This is because the Fed said they would start unwinding the balance sheet “relatively soon” instead of providing an actual date.

 

Gold Trade Plan

The idea is to enter a buy above $1258/60 with a stop loss below $1254 and a take profit of $1269. Good luck!

 
ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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