Gold Plunges Before FOMC Meeting Minutes
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.