Gold Takes a Deep Dive – FED Uncertainty Clouds Rate Cut

The Risk On sentiment is still pushing gold. Do you think gold will be able to recover somehow? I can see a sharp bearish rally in gold, but I’m not sure if it’s a good idea to go short right now when the market is massively oversold.

On Thursday, GOLD plunged to its lowest in a little over one week, after remarks from US Federal Reserve Chairman Jerome Powell dampened expectations of a near-term rate cut.

If you recall, we spoke about triple bottom resistance which was supposed to keep gold below 1,287. Well, the pattern did its role and pushed gold lower upon retest. For now, gold may find support around 1,268.

Support Resistance
1271.42 1285.76
1265.04 1293.73
1250.7 1308.07
Key Trading Level: 1279.38

On the lower side, GOLD can find support around 1,266 area along with resistance at 1,276. So we have two options now. First, we can short gold below 1,276 and second we can go long near 1,266. The stop loss needs to be 30/40 pips and take profit should be at 60 pips.

Good luck!