In the early American session, gold was trading within a symmetric triangle in a 1-hour chart. It was rebounding after having fallen to the zone of 1,766. It is likely that in the next few hours there will be an upward movement to the zone of 6 / 8 of Murray.
The Fed hinted at an interest rate hike earlier than expected for 2023. But the regulator sent the message of scaling back the bond purchase program.
This hawkish shift in the Fed's stance made investors revise their portfolios. Earlier, they saw gold as a safe haven asset. Now they turned to invest in the US dollar USDX, and the yellow metal fell to monthly lows of 1,766. At this time, we see a slight recovery.
The US dollar index (USDX) remains above the psychological level of 90.00 and having reached the maximum of 91.95, 7/8 murray zone. There could be a bearish reversal which could give an upward momentum to Gold in the coming days.
The key level for gold to come out of the downward pressure is located in the area of the SMA of 21 (1,790). A break and consolidation above this level is expected to have a boost to the area of 1,812 (6/8).
The technical reading of the eagle indicator in the 1-hour chart is showing a bullish signal, with a probability of rising to the resistance level of 1,812 in the short term.
Our recommendation is to buy at the current price levels above the upper line of the symmetric triangle on 1-hour charts, targeting 1,790 (21 SMA) and up to the key level of 6/8 of murray (1,812).
Support and Resistance Levels for June 18 – 21, 2021
Resistance (3) 1,828
Resistance (2) 1,810
Resistance (1) 1,788
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Support (1) 1,751
Support (2) 1,730
Support (3) 1,714
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Trading tip for XAU/USD (Gold) for June 18 - 21, 2021
Buy above 1,778, with take profit at 1,790 (SMA 21), and 1,812 (6/8) stop loss below 1,770.
