Gold Consolidates in Sideways Range – Let’s Trade Choppy
Arslan Butt • 1 min read
The precious metal GOLD is mostly steady despite a weaker dollar. Usually, gold takes a bullish turn in response to the weaker dollar but in the current scenario, it is behaving differently.
On Wednesday, the US dollar index weakened against a basket of six major currencies. The index fell to trade at 96.113 after dropping 0.4% overnight.
Most of the sell-off was triggered after Jerome Powell stated on Tuesday that growing risks and recent soft figures were unlikely to halt solid growth for the US. economy. He repeated that the Fed would remain “patient” on additional interest rate hikes.
On the technical side, gold is trading sideways in a narrow range of $1,332 – $1,321. In between this range, we will have a chance to do choppy trading by selling at the top and buying above $1,321. The breakout of this range will determine further trends in the market.
Gold – XAU/USD – Trade Plan
We are in a sell position below $1,327 with a stop loss above $1,330 and take profit at $1,322.