Gold Hits Target $1258 – Get Set For New Entry
Arslan Butt • 1 min read
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 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!