Green Pips in Gold – Bullish Bias Dominates

The safe-haven metal prices flashing green and recovering losses of the previous session, which mostly triggered following the United States


The safe-haven metal prices are flashing green and recovering losses of the previous session, which were mostly triggered following the United States Federal Reserve policy meeting outcome.

The Federal Reserve cut rates for the second time during this year on Wednesday, by a quarter-point. The Federal Reserve funds rate is now 1.75% to 2%, but the bullish trend in gold is triggered over sentiments that no additional rate hikes are expected in the coming days.

As we know, the greenback has traded almost to all-time highs, but now traders are doing profit takings ahead of the weekend, which is why we see bullish trends in gold.

 – XAU/USD – Technical Outlook

Gold is now trading within a wide range of 1,484 – 1,510 and a breakout of this level is likely to determine further trends of the market. Closing of reversal candle above this support zone of 1500 is suggesting bullish trade opportunity.

Gold still has a probability of going after the 1,510 level, and the violation of 1,510 can lead it to 1,520. The RSI and Stochastics are turning into the bullish zone and crossing over 50 levels, suggesting odds of a bullish reversal in gold. The 50 periods EMA, the one in yellow, may cause resistance at 1,500 level today.

Daily Support and Resistance

S3 1477.13

S2 1488.11

S1 1493.57

Pivot Point 1499.1

R1 1504.56

R2 1510.08

R3 1521.07

Gold – XAU/USD – Trade Idea 

The idea is to stay bullish above the 1,500 level to target 1,507/10. Whereas, the bearish setup can be seen below 1,510 today.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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