Gold’s Double Top Keeping Bulls in Check – Fed Awaited
Arslan Butt • 1 min read
On Tuesday, the yellow metal GOLD continues to surge below 1,247 after staying bearish on Monday. Traders await the highly-anticipated Federal Reserve meeting that is set to kick off later in the day. As we all know, the Federal Reserve isn’t expected to change interest rates in its policy decision on Wednesday. However, Jerome Powell, the US central bank Chief, is widely expected to present a more dovish outlook. So that can be one of the reasons behind gold’s bullishness.
On the other hand, investors are still uncertain about Chinese President Xi Jinping’s presence in the G20 meeting, which is due later this month. Trump has warned of additional tariffs if both nations fail to meet and to settle a deal.
On the technical front, gold continues to be bullish but is facing massive resistance at 1,347 trading level. Gold marked a couple of doji candles below the double top pattern, suggesting bears may be dominating the market. However, it looks like the bulls are taking over ahead of Fed rate decision.
Gold is still facing immediate resistance at the double top level of 1,347. While support is likely to be found at 38.2% Fibo levels of around 1,326. Both the 20 and 50 Periods EMA await approximately at 1,307 and 1,295 respectively, suggesting that gold has an opportunity to stay bearish until these levels.
Key Trading Level: 1338.67
Gold – Trading Signal
The idea is to stay bullish above 1,338 to target 1,346 and 1,360 if gold manages to violate 1,346 level.