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Gold Trade Idea – FOMC Meeting Minutes In Focus!

Good day, fellas.
Gold is trading in line with our forecast Gold Trades Choppy – Investors Await FOMC Meeting. The idea was to stay bullish above $1,198 to target $1,202. However, gold still continues to stay in a narrow range of $1,194 – $1,208 as investors are saving their shots ahead of the Fed’s rate decision.

Fed Rate Hike Sentiment – “Priced In”

We all know the Fed is very likely to hike the rate in September and December 2018. For that reason, most of the investors have already taken the long position in the U.S. dollar. Increasing demand for the dollar is weighing on precious metal as the stronger dollar makes gold a less attractive commodity to buy. However, FOMC meeting minutes can cause profit taking in the dollar.

Fed Rate Hike to 2.25% – Dovish Vs. Hawkish

In both cases, the “priced in” dollar is likely to retrace back. As a result, we can see some bullishness in the precious metal. I’m not expecting any changes in FOMC meeting minutes today which can disappoint the dollar investors, thereby causing a flow of investments from the dollar to gold. A rise of 2.25% rate hike can cause a sharp dip in gold, but then we will have an opportunity to open a long position as gold can take a bullish reversal.

Gold //XAUUSD – Trading Plan

The idea is to stay bullish above $1,200 with a stop below $1,197 to target $1,210. It’s a Pre-FOMC trade plan as the market may get extremely volatile on the news. Therefore, team FX Leaders will share a new trade plan during the U.S. session. Good luck!

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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