The yellow metal is still trading in the range and pressing deeply on a bearish side due to rumours. We aren’t looking for any long-term trend in the market rather quick entries for intraday profits.

Sell The Rumours, Buy The Fact

The Central Bank of United States – the Federal Reserve, is expected to increase the interest rate by 0.25% from 1.50% to 1.75%. Consequently, investors are selling Gold on sentiments. In my opinion, this hike in the rate is already priced in and the noise traders are still in the market to dodge the technical analysts.  

On Wednesday we can expect a reversal in Gold on the release of the hike in the rate. I will discuss it in more detail before the release of the news thus stay tuned for ideas of how to trade Gold on the Fed rate.

Technical Overview – Bearish

Looking at the 4-hour chart, Gold has already broken out of a descending triangle pattern, which was supporting it above $1,315. For now, the same level is working as a resistance.

Gold – 4-Hour Chart

The precious metal is likely to gain support above $1,302, the double bottom level. The RSI isn’t oversold in the smaller time frames and we can expect a sell up to $1,302 today.

Gold – XAU/USD – Trading Idea

I’m looking to stay bearish below $1,313 with a stop above $1,316 and take profit at $1,306 and $1,303.

Good luck!