Gold Edges Down as Dollar Strengthens Over Rate Hike Sentiment
Gold is facing a strong support above a double bottom level of $1,234. We can see a bullish engulfing pattern right above $1,234 which...
What’s up, fellas.
The financial markets are exhibiting thin trading volume in the absence of top-tier economic events. However, gold prices trade bearish ahead of a US Federal Reserve meeting this week.
The US dollar is getting stronger over as:
1- The US and China trade war is boosting the safe haven appeal in dollar while diminishing the demand for gold.
2- US central bank, the Federal Reserve, is widely expected to hike the interest rate for the fourth time in December 2018 and traders are buying dollar on those rumors. Consequently, gold is staying bearish.
Gold – XAU/USD – Technical Outlook
Gold is facing a strong support above a double bottom level of $1,234. We can see a bullish engulfing pattern right above $1,234 which increases the importance of the current support level. So, the continuation of the bullish trend can lead gold prices towards $1,246.
Whereas, the bearish breakout at $1,230 can lead gold prices towards $1,227 and $1,219.
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