Gold Steady On Monday – Fed Policy Decision and NFP Awaited this Week
Arslan Butt • 1 min read
Gold prices are steady today near $1,220 as the dollar stays strong against its peers on the back of interest rate hike sentiments. The investors will be trading very carefully ahead of key central bank meetings and U.S. inflation and payrolls data this week. Here’s an update on our trade idea…
Fellas, the Greenback remained broadly supported during the Asian session, as traders awaited central bank meetings this week. Higher U.S. rates serve to support the dollar and bond yields, making dollar-denominated gold more expensive for other holders and denting bullion’s non-yielding appeal.
Technically, gold has a very strong resistance near $1,222 which is extended by the 100 periods moving average. For the moment, gold is trading right below this resistance level. The closing of candles below this area can drive another round of selling in gold. Whereas, the violation of this can lead gold prices towards $1,227 today.
Looking at the 2-hour chart, gold has formed a test bar 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 $1,222 and $1,227. Whereas, the support prevails near $1,218 and $1,212
Gold – XAU/USD – Trading Plan
During the Asian session, we opened a forex trading signal to stay bearish below $1,221 with a stop above $1,225 and take profit at $1,218. The market may exhibit thin volatility but we need to stay patient to get our target price. Good luck!