Gold Prices Skyrocketing – ABCD Pattern Signals $1,400 - Forex News by FX Leaders

Gold Prices Skyrocketing – ABCD Pattern Signals $1,400

Posted Friday, June 14, 2019 by
Arslan Butt • 1 min read

Earlier today, team FX Leaders managed to capture a sharp bullish movement in the precious metal gold. The buying was triggered on behalf of Federal Reserve rate cut expectations. GOLD prices traded bullish around 1,341, adding 0.92% for the day.

The US Federal Reserve isn’t expected to nor would it change rates at its meeting on June 19. Nonetheless, the markets are anticipating possibilities of a rate cut ahead of the year-end due to slowing inflation and rising trade tensions. For your info, a lower rate of interest reduces the opportunity cost of holding non-yielding metals.

On the technical side, gold has completed 38.2% Fibonacci retracement at $1,320 and right after that, bulls violated the B level at $1,342 to push gold around $1,352.

The ABC & D pattern seems to form here, where C to D wave is in production. C wave triggered at $1,320 level and technically it may push gold prices higher towards $1,400. Although it’s an aggressive forecast, that’s something suggested by technical analysis.

If anything changes, I will surely update you guys. Good luck!

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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