Gold Prices Standstill Before FOMC Minutes – Descending Triangle In Focus
Arslan Butt • 1 min read
The bullion market is trading in narrow ranges as investors seem to stay out of the market ahead of Federal Open Market Committee. As per the recent range, gold is consolidating in $1,218 – 1,226. Anyway, the trading range is very likely to get violated during the U.S. session on the release of FOMC meeting minutes. Here’s what to expect…
FOMC Statement & It’s Impact on Gold
We already spoke about FOMC meeting minutes and expectations in FX Leaders Aug 01- Economic Events Brief. It is not expected that the Fed will hike rates at this meeting, but if they do, gold will be dip dramatically.
If rate hike isn’t coming then what we are expected to see in FOMC?
Well, we need to focus on the Fed’s language, especially after President Donald Trump lashed out at the Fed for raising rates. Let’s see if it has changed the decisions of Fed officials.
The hawkish tone will drive bears for gold. By hawkish, I mean the discussion about hiking interest rate in Sep and Dec.
Gold’s Technical Analysis
On the 2- hour chart, gold has tested $1,224 number of times, making this level a triple top pattern. This pattern is known for a bearish reversal. But at this point, we can’t say much about it as the FOMC meeting minutes are there to set the trend today.
At present, gold is holding below a solid resistance level of $1,224 and the violation of this can bring more buyers until $1,228 and $1233. Whereas, the support prevails at $1,218 and $1,212.
Gold – XAU/USD – TraIdea
Fellas, I haven’t placed any trade in gold today as the market is lacking volatility. The rough idea is to stay bullish above $1,222 and bearish below the same level. Good luck!