Hawkish Powell Beats Gold – Time to Catch Retracement

On the 4-hour chart below, the yellow metal Gold has formed a bullish harmonic pattern which completed it's C to D wave near $1,313...


Gold prices remained flat during the Asian session and continued to trade in a bearish trend thus expect a retracement up to $1,322. Let’s trade Gold.

Fundamentals Review –  Federal Reserve Chairman Jerome Powell

Federal Reserve Chairman, Jerome Powell remarked that he foresees the economy to be stable through the next two years and that his personal standpoint for growth has strengthened.

In response to this, after finding out the new Fed head is set to continue the hawkish policy, the bulls entered the Dollar market. We have seen massive sell-off in Gold since there is a negative correlation between Gold and Greenback. 

Technical Outlook – Bullish Harmonic Playing

On the 4-hour chart below, the yellow metal Gold has formed a bullish harmonic pattern which completed it’s C to D wave near $1,313, meaning Gold can trade bullish until it completes 38.2% Fibonacci retracement at $1,322.

Gold - 240 Min Chart

Gold – 240 Min Chart

However, there’s still divergence between the fundamentals and the technical indicators. To be on the safer side, I prefer to wait for a pullback in Gold before taking any trade.

Also consider monitoring the high impact economic events from the US: FX Leaders Feb 28- Economic Events Brief.

All the best!

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

Related Articles

Comments

0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Doo Prime

XM

Best Forex Brokers