Late Week Outlook For Trading Gold

Gold has been a featured commodity here at FX Leaders and a leading performer. Kudos to all who benefited from the sell signal earlier today. If not, take a look at the signal page. It has trade ideas facing a variety of forex, indices, and commodity products.

Wednesday’s quarter-point rate hike by the FED promoted dovish price action facing the USD. It has become obvious that many traders were betting on the half-point hike. The result was initial pressure on the USD and a bump in gold.

Today, investors have taken a step back and evaluated what is coming down the pike. The FED projected rates to be tightened three times over the course of next year. This notion is beginning to take root, as the USD is stabilizing and gold is subsiding.

Gold Technicals

Early strength has given way to concerted selling during the U.S. session.

Price has stalled out short of our primary resistance levels on the daily timeframe. A few observations regarding this market:

• Price remains below the 38% retracement of the current wave without issuing a hard test of the level. This preserves my short-term bearish bias.
• An “L” pattern is beginning to take shape on the daily chart. We may be in for horizontal trading between the swing low and 38% retracement for the near future.

Overview: Today’s closing range will give us a good idea what Friday’s session holds. If we see a fill-in of yesterday’s range, then rotation is likely for the near-term. With no planned economic market-movers for the next 24 hours, a range bound market is probable.

Barring any breaking news items that prompt a run to safe havens, gold should stabilize through tomorrow’s session. A rotational approach may prove effective if this scenario unfolds.

ABOUT THE AUTHOR See More

Shain Vernier

US Analyst

Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.

Related Articles

Relentless Gold Rally Fuels Record High for Commodity-Heavy JSE All Share Index

12 hours ago

Save

Forex Signals April 22: Mind Tesla and Google Earnings After US Stock Markets Close

14 hours ago

Save

WTI Crude Climbs to $62.80—Eyes $65.70 Amid Tariff Turmoil

17 hours ago

Save

Comments

0 0 votes

Article Rating

Subscribe

Login

Notify of

new follow-up commentsnew replies to my comments

Please login to comment

0 Comments

Oldest

Newest Most Voted

Inline Feedbacks

View all comments