Gold prices resistance area & fed meeting june 13 2018 & fed rate hike
12-06-2018 10.40 AM
Gold prices sustained to stay close around the psychologically significant $1,300 level in advance of a comprehensively expected Federal Reserve interest rate increase due Wednesday.
Gold prices continued to be range bound as upside momentum in the yellow metal was limited by outlook that the Federal Reserve will not only hike interest rates on Wednesday but also signal an aggressive incline on monetary policy.
The European Central Bank is also expected to proclaim its intent to take efforts to restraint in its enormous bond buying programme on Thursday.
Gold prices were unable to break and close above $1305 for the past one month with the only reason that the previous support became resistance trend line at $1305 which is considered as an important barrier for the market. Once a break above occurs, then the prices will turn bullish extending towards $1315-1325.
If it does not break above then the selling pressure will be enabled towards the first level of support line $1288-1275 level in the upcoming session.
If you can notice the technical chart outlook, the prices have already broken the resistance line wherein “Falling channel pattern” on a daily chart. But meanwhile, the prices have taken some consolidation due to $1305 which is a short-term struggling point that has to be controlled.
Traders await for FOMC statements as fed plans to raise FED interest rate by 1.75% to 2% level on Wednesday night at 11.30 pm, which was revealed by a financial news company.