Gold Plunges Before FOMC Meeting Minutes

Posted Wednesday, February 21, 2018 by
Arslan Butt • 1 min read

Gold has fallen dramatically during the US session as the Greenback continued to strengthen ahead of FOMC today. Today the market is showing promising opportunities.

Fed Rate Hike Sentiment – Priced In

We all know the Fed is likely to increase its rate in March and for that reason, it looks like most of the investors have already taken up position with the US dollar.

The stronger dollar makes Gold a less attractive buying commodity with increasing demand for the dollar that is weighing down the precious metal. FOMC meeting minutes turn that around and generate a profit in the dollar today.   

FOMC Meeting Minutes – Dovish Vs. Hawkish

In both of these cases, the ‘priced in’ dollar is likely to backtrack. As a result of this, we see some bullishness in the precious metal. The FOMC meeting minutes today can disappoint the dollar investors but it’s likely there won’t be any changes, thereby causing a flow of investments to shift from the dollar to Gold. Be prepared for any surprises.

Gold/XAU/USD – Trading Plan

Idling by for Gold to come down to $1,323 to catch a buy entry with my first target at $1,330 and the second at $1,335. 

Good luck!

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