Gold Edges Down as Dollar Strengthens Over Rate Hike Sentiment - Forex News by FX Leaders

Gold Edges Down as Dollar Strengthens Over Rate Hike Sentiment

Posted Monday, December 17, 2018 by
Arslan Butt • 1 min read

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!

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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