Green Pips in Gold – Bullish Bias Dominates
Arslan Butt • 1 min read
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.
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
Pivot Point 1499.1
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.