Gold futures are trading better in mid-session Wednesday, as investors await the release of the minutes from the Federal Reserve’s monetary policy meeting at 6:00 p.m. GMT. Traders will review the minutes to find out if policy makers are ready to take other stimulus measures to reduce the impact of the coronavirus on the economy.
June Comex gold traded $ 1,686.90, up $ 3.20 or + 0.19%. “data-reactid =” 13 “> At 4:00 p.m. GMT, June Comex gold traded $ 1,686.90, up $ 3.20 or + 0.19%.
Gold traders are also reacting to the intraday weakness of the US dollar. The greenback returned almost all of its previous gains after investment sentiment turned bullish following a positive statement about the slowdown in new cases of coronavirus in US hotspots.
The change in investor sentiment is also helping to boost share prices. Today marks one of the few days in the past month when gold and stocks have not budged.
Daily technical analysis
The main trend is upward according to the daily swing chart, but the high of yesterday’s closing price reversal may be an early indication that momentum is about to go down.
A trade on $ 1742.60 will cancel the peak of the closing price reversal and signal a resumption of the uptrend. The main trend will go down if the sellers eliminate the last swing bottom at $ 1576.00.
The short-term range is from $ 1,576.00 to $ 1,742.60. Its retracement zone of $ 1,659.30 to $ 1,639.60 is the main bearish objective.
On the downside, the closest targets are a short 50% level at $ 1,659.30 and a bullish Gann angle at $ 1,656.00. Since the main trend is going up, look for buyers to appear on a test for this area.
If $ 1,656.00 fails as support, look for the sale that may extend to Fibonacci at $ 1,639.60. It is also a possible support.
The transition to the weak side of the Fibonacci level should trigger a new break in the bullish Gann angle at $ 1616.00.
On the upside, the first objective is a minor pivot at $ 1,706.70. This is followed by a strongly bullish Gann angle at $ 1,736.00 and the closing price reversal peak at $ 1,742.60.
Look for volatility and a possible bilateral transaction at 6:00 p.m. GMT after the publication of the Fed’s minutes.
We could also consider nasty bilateral trade. If the Fed promises more stimulus, prices could be rigged in the short term. This will be good news for long term investors, but not necessarily for short term traders, especially if the stock market soars.
article was originally published on FX Empire “data-reactid =” 39 “> This article was originally published on FX Empire