Gold Breaches $1,400 – is it Going to Reverse? - Forex News by FX Leaders

Gold Breaches $1,400 – is it Going to Reverse?

Posted Friday, June 21, 2019 by
Arslan Butt • 1 min read

Gold prices are flying in all currencies, violating $1,400 in US dollar and placing an all-time high of $2,010 in Australian dollars during the early Asian trading on Friday.

The precious metal rose after the Federal Reserve held rates uniform on Wednesday but opened the door to rate cuts as soon as July by removing the word “patient” from its latest monetary policy statement. During the Asian session, gold in USD surged to $1,411.83 early Friday, reaching nearly a six-year high.

Gold’s Technical Outlook

On the technical side, gold has violated $1,400 level, but it’s likely to retrace back. The breakout was triggered over fundamentals, particularly after a dovish FOMC.

This week, we should closely monitor the closing of candles. Gold is now targeting $1,400 level, but the closing below this level may add selling pressure on gold.

1379.73 1395.26
1371.07 1402.13
1355.54 1417.66
Key Trading Level: 1386.6

Closing below $1,400 level can extend bullish rally until $1,460 whereas, closing below $1,400 level may trigger a sell-off until $1,370.

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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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