Gold Sideways Range Intact – Investors Brace for FOMC & Fed Rate
Arslan Butt • 1 min read
The safe-haven metal prices are flashing red as all traders await Federal Reserve rate cut decision which is scheduled to release during the day. GOLD prices dropped by 0.2% to $1,502.55 an ounce in Asian session today.
According to the forecast, the Federal Reserve monitoring tool giving the hints the 50.8% possibility of the rate cut, where the Federal fund rate can drop to 1.75% from 2% and to 2% from 2.25% in future.
Meanwhile, the Federal Reserve meeting is likely to bring a trend of a rate cut decisions from other central banks as well, including Swiss National bank, the Bank of Japan and the Bank of England which are ready to release their decisions tomorrow.
On the trade front, all markets focus on the developments of the global trade right now, expecting fresh headlines. Meanwhile, President Donald Trump could announce a trade deal with his administrations next week. Moreover, Trump also said that hopefully China will try to deal with somebody else but it should be noted that the terms of the agreement will be worse if China agrees after the elections of 2020.
GOLD – XAU/USD – Technical Analysis
Gold continues to trade in the broad trading range of $1,520 – $1,486. However, the 50 periods EMA is extending an immediate hurdle around $1,506/7 area. It’s hard to expect further buying in gold unless the $1,507 region is violated.
The RSI is holding in the selling zone, and the way EMA is pushing gold lower, it looks like gold will take a bearish reversal below $1,507 area today. On the lower side, support stays at $1,495 and $1,485.
Daily Support and Resistance
Pivot Point 1500.49
Gold – XAU/USD – Trade Signal
Today, the idea is to stay bearish below 1,500 level with a stop loss above 1,504 and take profit around 1,494 area. Whereas, bullish entries can be taken above 1,500 level today.