GOLD Price Analysis and Trade Forecast: Daily Trading Signal

Daily Price Outlook

    * Gold's substantial uptrend reached a high of $2,067, driven by the US Federal Reserve's interest rate hike from 5% to 5.25%.

    * Despite the typical negative correlation between the US dollar and gold during rate hikes, the 5.25% hike was already anticipated and priced in, leading investors to buy gold after the announcement.

    * Gold currently faces resistance, with the potential to drop towards immediate support levels of $2,030 or $2,025 if it fails to break through.

The precious metal gold experienced a substantial uptrend, reaching a high of $2,067, largely driven by the US Federal Reserve's interest rate hike from 5% to 5.25%. Typically, the US dollar has a negative correlation with gold when the Federal Reserve raises interest rates, as it strengthens the US dollar. As a result, gold prices tend to decline when the US dollar strengthens.

However, in this specific case, the 5.25% rate hike was already anticipated and priced in, meaning investors were well aware that the rate hike would trigger a downtrend in gold.

Consequently, they held a bearish stance on the precious metal. However, once the rate hike was announced, investors began purchasing gold.

Currently, gold is facing resistance, and below this level, it has the potential to drop towards an immediate support level of $2,030 or $2,025.

Gold (XAU/USD) Trade Idea

Entry Price – Sell Below $2055

Stop Loss – $2030

Take Profit – $2070

Risk to Reward – 1 : 1.65

Profit & Loss Per Standard Lot = +$2500/ -$1500

Profit & Loss Per Micro Lot = +$250/ -$150