Sideways Gold Awaits NFP Tomorrow – Get Ready for Choppy Session Today
Gold is trading slightly bullish this morning before the release of FOMC and Fed fund rate later today. Is it preparing for another sharp selling? Let’s find out how to trade gold today…
During the Asian session, the gold prices rose for the second session after the U.S. Federal Reserve held interest rates steady, just as expected, while investors awaited talks between the U.S. and China. Overall, they traded exactly in line with our forecast Gold Gains Support Ahead of FOMC. Today, the trading volume may remain low as investors are eyeing U.S. labor market reports. So, let’s look at the technical side of gold.
Gold – XAU/USD – Technical Setup
On the 4 – hour chart below, gold is trading on a sideway range of $1,303 — $1,310. On Wednesday, it was risky to trade during the U.S. session. The U.S. Federal Reserve (Fed) kept its benchmark interest rate unchanged at 1.75% but recognized that inflation is beginning to heat up things. Consequently, gold spiked to $1,312 but the gains remained in check.
For now, gold has formed solid bullish candles which are signaling a clear buying intention of the traders. Gold is likely to face an immediate resistance at $1,310 and $1,316. On the lower side, $1,307 is a crucial trading level and gold can stay bullish above it today. Violation of $1,307 can open further room for selling until $1,303.
Gold – XAU/USD – Trading Plan
Traders, I would like to profit of the choppy trading in gold. The idea is to buy above $1,307 to target $1,310 and taking another buying above $1,310 to target $1,316. Good luck!