Gold Trade Idea – FOMC Meeting Minutes In Focus!
Arslan Butt • 1 min read
Good day, traders. Gold is trading in line with our analysis 60 Green Pips In Gold – Are You Ready for the Next Setup. The idea was to take a buy position above $1,276 to target $1,287. Yesterday, Gold dropped to $1,276 and pulled back later. Today, it depends on FOMC meeting minutes.
Gold is supported because of two reasons:
Safe Haven Demand
North Korea and the United States are still playing their role in influencing the Gold prices. The tensions between both economies boosted when US President Donald Trump put North Korea back on a list of state supporters of terrorism.
Fed Rate Hike Sentiment – "Priced In"
Since we all know the Fed is very likely to hike the rate in December, most of the investors have already taken the long position in the USD. Increasing demand for the dollar is weighing the Gold as the stronger dollar making Gold a less attractive commodity to buy. However, the FOMC meeting minutes can cause investors to sell the USD to secure profit.
FOMC Meeting Minutes – Dovish vs. Hawkish
In both cases, the "priced in" dollar is likely to retrace back. As a result, we can see some bullishness in the precious metal. I'm not expecting any changes in FOMC meeting minutes today which can disappoint the dollar investors, thereby causing a flow of investments from the dollar to Gold. However, we should be ready for any surprises.
Gold – 4-Hour Chart – Trading Range
Gold // XAUUSD – Trading Plan
Once again, I will be waiting for Gold to come down near $1,276 to take a buy entry. My first target is $1,287. While $1,287 seems to be a nice level for selling. Good luck!