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