U-Turn in Gold – FOMC Drags the Precious Metal Lower
Arslan Butt • 1 min read
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.
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.