Quick Recap – Last week, gold prices spiked following softer than anticipated US retail sales and Inflation (CPI) figures, placing a high around $1,280 per ounce. However, the gains were limited and investors encountered a sharp reversal due to the FOMC. It tested multi week's lows of $1,250.

Gold Daily Forecast – At the moment, we can see the gold is holding right above the major support level of $1250 with a neutral sentiment. Though the long-term trend is bearish, it is now supported by the Fed Rate Hike by 25 base points.

Today,  we don't have anything on the economic calendar that may interest investors, except, FOMC Member Dudley speech. As discussed in our Forex Signals Brief For 19th – 25th June,  Dudley is due to speak at 12:00 (GMT). Any hawkish remarks from him are likely to give investors another reason to enter a sell position in the bearish gold.

Forex Trading Signal – Idea

Investors are recommended to keep a close eye on $1250/51. We can have a sell position below $1249 with a take profit of $1246/44. While on the other hand, It seems to be a good trading level for a buy position above, with a stop loss below $1249, and a take profit above $1254/55.

Gold – 4-Hour Chart – Triple Bottom Level

Technical Outlook – Intraday

On the 4-hour chart, there is a triple bottom level of $1250, which is now extending a solid hurdle along the way. Gold has also formed a couple of doji and spinning top right above this level, due to which $1251 trading level has gained attention.

In addition, the leading indicators, 20 & 50 periods EMA's are suggesting a bearish trend, along with the momentum indicators. The RSI and Stochastic are holding below 50, the sell zone.