Gold Steady Triple Top at 1,430 – Fed Rate Cut Sentiment Underpins
Arslan Butt • 1 min read
What’s up, traders.
We just opened a forex trading signal in gold to target 1,429 as the precious metal is gaining supported ahead of Fed rate cut sentiment. In contrast, the Asian investors were shorting the precious metal, dropping it from 1,427 level to 1,422 as the US dollar held near multi-month highs.
Investors are still confused ahead of the outcome of a two-day US Federal Reserve policy meeting, where the central bank is widely expected to reduce interest rates.
On Tuesday, the US Fed starts a two-day policy meeting at which it is widely expected to lower interest rates by 25 basis points. Interestingly, if the Fed cuts the interest rate, it would be the first rate cut by the Fed since the financial crises.
GOLD – XAU/USD – Technical Outlook
Taking a look at the 2-hour chart, gold is facing strong resistance at 1,427/29 trading level. It’s the same level that has provided solid resistance to gold back on July 22, 24 and 26.
Gold also has a bullish crossover above 50 and 100 periods EMA, which are now supporting the metal around 1,422.
The RSI and Stochastics are stuck in the bullish zone, and these are likely to enter overbought zone very soon.
Closing of doji below 1,429 can be a risk signal for our trading signal, and I may close the position at breakeven to avoid bearish reversal.
Gold – XAU/USD – Trade Signal
Fellas, I will be looking to close the gold trading signal below 1,427/28 due to recently formed doji pattern. However, I have placed a buy limit around 1,422 to target 1,429 later today.