Gold Standstill Before FOMC Minutes – Fasten Your Belts for Breakouts
In the absence of top-tier economic events, gold remained range bound and continued to consolidate in a narrow trading range of 1,401-$1,389. Looks like the wait is over as gold may exhibit a breakout during the US session on the release of FOMC meeting minutes. Here’s what to expect.
Today, the precious metal GOLD was set to fall for a fourth straight session as traders continued to twist back sentiments of aggressive interest rate cuts. Well, the major bearish pressure came last week after better-than-expected US jobs report depressed expectations that the Fed would diminish rates by 50 base points at the July 30-31 meeting.
The spotlight stays on the Federal Reserve Chairman Jerome Powell speech, as he is due to appear before Congress today and on Thursday for his semiannual testimony.
Gold’s Technical Analysis
Precious metal gold continues to consolidate in a wide trading range of 1,410 – 1,380, ahead of FOMC Meeting minutes and Federal Reserve Chairman Jerome Powell speech. The market seems to be cautious with their trades as any surprise by Jerome Powell may hit gold hard.
Stochastics and RSI have entered the bearish zone neutral around 50, suggesting a neutral bias of traders. In case the market violates 1,383 trading level, we may see gold prices falling towards 1,373 and even towards 1,355 later this week,
On the upper side, gold can stay bullish up to 1,410; however, to achieve this level, gold has to violate 1,401, the crucial level for today.
Support Resistance
1384.44 1416.33
1369.6 1433.38
1337.71 1465.27
Key Trading Level: 1401.49
Gold – XAU/USD – Trade Idea
We just shared a forex trading signal to short gold below 1,391 with a stop above 1,393 and a take profit of 1,388.
Good luck!
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