On Thursday, gold prices edged higher to trade above $1,241 as the dollar slipped. The sentiment for the number of US interest rate hikes next year is diminishing, raising the appeal of non-interest yielding gold. Although, gold is mostly trading sideways as investor focus shifts towards the monetary policy decision from the European Central Bank and Swiss National Bank.

As per consensus, both policymakers are widely expected to keep interest rates steady. While the ECB is expected to halt the quantitative easing program as assured.

How This Can Impacts GOLD ?
In case ECB halts the QE (quantitative easing), there’s a chance that investors will move their investments into Euro, making dollar bearish. Consequently, the weaker dollar can extend support to gold.

However, this depends on the hypothesis that Mario Draghi won’t say anything negative about economies such as slacks in the labor market and slower growth.

Support Resistance
1242.66 1247.93
1239.72 1250.26
1234.45 1255.53
Key Trading Level: 1244.99

Therefore, team FX Leaders has opened a buying trade above $1,243 with a stop loss of $1,240 and take profit at $1,247.

Good luck!