Gold Prices are on a bearish track due to doubts on additional easing. During the early Asian sessions, the yellow metal gold price found on the bearish track due to the US Federal Reserve rates cut by just 25 base points. It’s a less dovish than expected monetary policy as the Fed hinted the additional easing can’t follow.

The US Federal Reserve stated the 25 basis points rate cut overnight, the first since the 2008-2009 financial crisis, to maintain a record decade-long development of the US economy. But, despite the Federal Reserve did not quickly hint if it will cut rates by another quarter % point into September, such as a lot of traders hopped, the dollar took a bullish turn.

On the other side, the strengthening US Dollar is also putting pressure on the gold prices. The greenback index that tracks the US dollar against a bucket of other currencies moved upside 0.3%.

GOLD – XAU/USD – Technical Outlook

Speaking about the technical indicators, gold has already violated the double bottom support level of $1,411.

Gold also has a bearish crossover below 50 and 100 periods EMA, which are now supporting the bearish trend in gold.

The RSI and Stochastics are below 50, the bearish zone, suggesting the bearish bias among traders.

Gold – XAU/USD – Trade Signal

Traders, I will be looking to stay bearish below $1,411 until the market test $1,400 support area. The odds of bullish bounce back are higher around $1,400 but in case level fails to survive above this level, we may see gold falling further towards $1,388.

Good luck!