Gold Breaches $1,400 – is it Going to Reverse?
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.
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.
Stay tuned to FX Leaders for forex trading signals. Good luck!