Sideways Trading in Gold – Investors awaits FOMC Decision This Week!
Arslan Butt • 1 min read
Gold consolidates above a strong support level of $1,193 as the dollar held strong on news that China has canceled trade talks with the United States. Besides the trade war, investors are also eyeing the US FOMC meeting for guidance on future rate hikes. The Fed is very likely to hike the interest rates by 25 base points from 2% to 2.25%.
Consequently, the dollar is getting stronger, making dollar expensive for foreign investors.
On the technical side, the yellow metal has come out of the ascending triangle pattern which is also suggesting a bearish bias of traders. The 20 & 50 periods EMA are providing resistance at $1,202 and $1,204 while the Stochastics is holding in the oversold range.
Key Trading Level: 1200.73
The double bottom support at $1,193 is underpinning gold, but the violation of this level can lead gold prices towards $1,187. Good luck!