Gold Reverses On Fed Rate Hike – What’s Going On?
Arslan Butt • 1 min read
What’s up, fellas. Our forex trading signals on Gold did remarkably well. We made hay while the sun shines two times. Firstly, by shorting the Gold near $1,245 before FOMC and taking profit on it near $1,240. Later, the priced in Gold reversed and help us secure profits on our long-term trading signal with a target of $1,256. Check out our quick entry here for today…
Why Gold Reversed On Fed Rate Hike?
Fellas, let’s recall our Pre-FOMC update entitled Considering Multiple Scenarios – How to Trade Gold Today?The 1.50% interest rate was already priced in. The investors were discounting the Gold prices from the start of the week to get maximum benefits. Since the Fed release came as no surprise, the investors exchanged the oversold metal with the greenback.
Technical View – Gold // XAUUSD
As discussed earlier, the Gold already hit our two targets $1,251 and $1,259. But now, Gold seems to take a breather below $1,259. So, here is our chance to cash the opportunity. The Doji candle on the 4-hour chart is extending additional support to the selling bias.
Gold – 4 – Hour Chart
Gold // XAUUSD Trading Idea
Fellas, I’m not placing any long-term position in Gold for the moment. It’s better to wait for the market to absorb this shocks given by Fed. However, I just shared a forex trading signal to open a sell below $1,256 to target $1,251.50 with a stop above $1,260. Good luck!