U-Turn in Gold – FOMC Drags the Precious Metal Lower

Gold prices were steady near a 10-month peak at $1,344 on Thursday, with the greenback holding steady before FOMC. But as soon as...

The USD is gaining against all instruments today, including Gold

Gold prices were steady near a 10-month peak at $1,344 on Thursday, with the Greenback holding steady before FOMC. But as soon as the Federal Reserve releases the hawkish FOMC meeting minutes, dollar jumped and gold plunged in response.

The FOMC meeting minutes from the Fed’s January 29-30 conference showed that policymakers may not yet have dropped their three-year campaign to raise interest rates. However, the pace of rate hike will be slower than expected before.

GOLD – XAU/USD – Technical Outlook

For the moment, gold is trading at $1,335 below a strong resistance level of $1,355 along with support near $1,324. The triple top pattern is still valid with resistance at $1,354.

On Wednesday, gold managed to close below $1,354 and trigger a sell-off today. That’s exactly what we forecast yesterday.

Support Resistance
1328.73 1347.76
1316.31 1354.37
1297.28 1373.4
Key Trading Level: 1335.34

Gold – XAU/USD – Trade Idea
I’m sticking with the same old plan of staying bearish below $1,344 with a stop near $1,348 and take profit $1,333.

Good luck!

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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