Gold prices are steady today near $1,231as the dollar slid to its lowest in nearly two weeks after the U.S. President Donald Trump scrutinized the Federal Reserve’s interest rate contracting policy. Although the fundamentals are bullish, the technical outlook is suggesting a bearish trade. Here’s a new trading signal for today…

As discussed in FX Leaders July 23 – Economic Event Report, Trump expressed concern about the Federal Reserve hiking interest rates two more times this year. He said that it takes away from the United States’ ‘big competitive edge’ and could hurt the U.S. economy.
As a result, the investors have drawn a sentiment that these remarks could hurt the Fed rate hike sentiment.

Gold – XAU/USD – Bearish Engulfing Pattern

The descending triangle pattern is still rolling in the market. For the moment, gold is trading below a solid resistance level of $1,238. That’s the same level which was working as a double bottom during the previous week.

Gold – Daily Chart

Looking at the 4-hour chart, gold has formed a bearish engulfing candlestick pattern, which is signaling that the bears are dominating the market. Speaking of support and resistance, gold is likely to face an immediate resistance near $1,233 and support near $1,227.

Gold – XAU/USD – Trading Plan
As a result of bearish engulfing, we opened a forex trading signal to stay bearish below $1,231 with a stop above $1,234 and take profit at $1,227. The market may exhibit thin volatility but we need to be patient to get our target price. Good luck!