Sangam Agarwal forex
Gold is currently in a sideways correction, but this week is important for gold traders because of several crucial news events, including the Fed FOMC meeting. If news events are all positive for gold, it could break out of its current range and hit all-time highs. Fed is considering rate pause. If recession and stagflation occur, it would be bullish for gold. The ultimate target for gold is $3,000.
Gold Trader, Get Ready for a Volatile Week
With gold trading within a tight range near the $2,000 mark for more than a month now, this week is poised to be crucial for gold traders. This is because, from the first day of the week to the last, there are many significant news events taking place in the market, such as the ISM PMI and NFP. However, the highlight of the week is the FOMC meeting, which can cause significant price action for gold.
Multiple News Events to Shake-Up Gold Trading
The FOMC Meeting Looms
Speculations Abound Before FOMC meeting
Influential Factors Affecting Gold Trading
On the other hand, if all the news comes out in a bullish direction for gold, it could break out of this range and hit an all-time high of $2,147. The events leading up to the FOMC meeting are vital for predicting how traders will react once the Fed makes its announcement.
Fed’s Plans and Potential Impact on Gold Trading
New Form of Economic Strategy
Gold Trader Beware: Market Correction Is Possible
If the ISM PMI and NFP both report higher-than-expected figures and the Fed raises rates by 25 basis points, then the 1926 level will serve as a support level on the daily timeframe. However, keep in mind that the long-term trend is still bullish, and the indicators point towards the possibility of a recession soon. If the recession happens, then stagnation will follow, which will be super bullish for gold. Ultimately, the target for gold traders should be $3,000.
Dynamic Key Support Level and Ultimate Target
Monthly Chart Predicts Massive Gain for Gold Traders
In summary, gold traders must prepare themselves for a volatile week with multiple news events that can significantly impact gold trading. While the FOMC meeting is the highlight of the week, other economic indicators play a crucial role in predicting how the market will react. Hence, gold traders must keep a watchful eye on these developments to make the right trading decisions.
