Sideways Moment in Gold – What to Expect on Monday?
Arslan Butt • 1 min read
On Monday, the safe-haven asset gold prices increased due to Powell’s speech about rate cuts. During the Asian market opening, gold prices surged dramatically as the US Federal Reserve Chairman Powell indicated that it’s planning to cut the interest rates despite a recent release of a strong US jobs report.
GOLD futures trade at $1,426 bullish, adding over 1% for the day. The Federal Reserve Chairman Jerome Powell said that the central bank will take proper action on growing economic uncertainties and slowing business investment.
The precious metal is presently trading near a 6-year high due to expectations for an aggressive rate cut this month, which will increase the demand for non-interest-bearing securities.
GOLD – XAU/USD – Technical Outlook
Fellas, gold is trading exactly as we forecast, to bounce off over $1,384 support zone. Long term resistance that the gold buyers can face is $1,427, the double top level. On the side of the leading indicator, gold has entered the overbought the zone which is one of the signals for a bearish correction. Secondly, gold has closed a bearish engulfing pattern on the 2-hour chart, which demonstrates that bears are taking control. Gold is likely to face immediate resistance at $1,416 along with support around $1,408 today.
Key Trading Level: 1409.39
The idea is to stay bullish above $1,409 with a stop loss below $1,406 and take profit of around $1,416 and $1,418.