Gold Trades Bearish Over Hawkish FOMC - Quick Update On Signal! - Forex News by FX Leaders

Gold Trades Bearish Over Hawkish FOMC – Quick Update On Signal!

Posted Thursday, October 18, 2018 by
Arslan Butt • 1 min read

The FOMC meeting minutes remained hawkish and lifted the demand for the dollar while fading the safe haven appeal for GOLD. Therefore, we have seen some selling in the precious metal gold. It’s trading below $1,227 and the violation of $1,221 can cause further selling until $1,218 today.

The RSI is trading below 50, which is a strong indication of the bearish bias of traders. Most importantly, gold is stuck in the asymmetric triangle pattern which is supporting it near $1,221 along with a resistance at $1,227.


The bullish breakout at $1,227 can lead it towards $1,232 and $1,238. Whereas, the market can stay bearish below $1,227 till $1,221 and $1,218.

Support Resistance
1223.08 1224.17
1222.45 1224.63
1221.36 1225.72
Key Trading Level: 1223.54

Gold – XAU/USD – Trading Idea
The idea is to stay bearish below $1,227 with a stop above $1,231 and a take profit of $1,221. Good luck!

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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