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.

All the best!

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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