Gold Trading Signal Brings Green Pips – What’s Next?
A day before NFP, the precious metal gold trades bullish as the dollar came under pressure following the US Fed rate cut decision. Besides, the uncertainty surrounding a US-China trade deal supported the metal’s appeal as a safe-haven investment.
On the American macroeconomic data front, the closely watched ADP Non-Farm Employment Change from the United States came in as expected 125K. At 17:30 GMT, the Advance Quarterly GDP of the US showed growth to 1.9% against the expectations of 1.6%. The GDP Price Index came in as 1.7% against the expectations of 1.8%.
The upward trend was dodged after the comment from Federal Reserve Chairman Jerome Powell that Fed will pause further monetary easing until the inflation goals are met. In its policy statement, the FOMC reiterated that further monetary easing would be paused for now, and a more “wait-and-see” approach would be adopted to assess the suitable path forward. It means that incoming information would be monitored to decide the way for a target range of Federal Fund Rates.
Support Resistance
1505.09 1508.07
1503.6 1509.55
1500.63 1512.53
Key Trading Level: 1506.58
GOLD – XAU/USD – Forex Trading Signal
The idea is to stay bearish below 1,510 and bullish above 1,502 until the breakout occurs. Investors will be looking for the NFP figures that are due tomorrow and we may see slow movement until now.
Good luck!
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