Sell The Rumour, Buy The Fact – A Sentiment Analysis of Gold

Looking at the 4-hour chart, Gold has already broken out of a descending triangle pattern, which was supporting it above $1,315...


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

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!

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.

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