Gold Consolidate In Narrow Range – Get Ready to Catch Breakout!
Arslan Butt • 1 min read
The safe haven asset GOLD held steady as a drop in Asian shares was compensated by a solid dollar, which firmed after minutes of the Federal Reserve’s September meeting bolstered expectations of a hawkish US monetary policy.
The FOMC policymakers are united on the need to boost borrowing costs further, minutes from their most recent policy meeting showed, boosting expectations the committee will stick to its hawkish stand on boosting interest rates.
The RSI is trading below 50, which is a strong indication of the bearish bias of traders. Most importantly, gold is stuck in an 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: 1224.87
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 $1,224. Whereas buying will be preferred above $1,224. Good luck!