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 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!