Gold Signal In Profit – How To Manage Your Trade?
Arslan Butt • 1 min read
Howdy traders, this week is of much importance for Gold and USD. We have the interest rate decision coming out from the Federal Reserve. Here is what to expect from Gold today …
Fed Fund Rate & Gold
Folks, just like us, everyone knows that the FED is highly likely to hike the interest rates by 0.25% to 1.50%. The current rate is 1.25%. But this interest rate hike sentiment seems to be already “priced in,”
This means that the investors have already taken their buying positions in the US Dollar while shorting the Gold. But now the Gold has reached to multi-month lows, and it’s making investors a bit cautious about the rate. For instance, what if the Fed doesn’t hike the rate and what if they hike it by 0.25% only. In both cases, the Gold is very much likely to reverse upward.
In addition to the sentiment analysis, the technical outlook is signaling a bullish reversal. For instance, looking at the daily chart of Gold, we can see a Doji candle. This Doji candle is followed by a strong bearish trend, which means the selling power is getting weaker and bulls are looming around the region to buy this oversold instrument. For all the newbies, read FX Leaders Candlesticks trading strategy to grasp more understanding.
Gold – Daily Chart
For now, the yellow metal is expected to pull back to 38.2% Fibo level of $1,256 and 50% level of $1,260.
Gold // XAUUSD – Trading Idea
I’m staying in a buying position above $1,245 with a stop below $1,241 and take profit at $1,253 and $1,256. Good luck!