RAPID SIGNAL BUY NOW Gold (XAU/USD) TP @: 1789.24 SL | Focal Community Group (FXSignals)

RAPID SIGNAL
BUY NOW Gold (XAU/USD)

TP @: 1789.24
SL @: 1781.39


Gold prices eased ahead of Fed meeting that investors will be watching for an update on the pace at which the US central bank plans to wind down its pandemic stimulus measures. I believe that the market has largely accepted that the Fed is now moving into a phase of monetary tightening after inflation showed a 6.8% y/y increase on Friday driven also by a very tight labor market which suggests that wages should rise as companies struggle to fill positions. Gold will no longer experience a shock, but remains at least somewhat lucrative as an inflation hedge. I expect a small spike after the Producer Price Index also continues to rise (already in a range above 9%). I don't think the Fed will be able to have a big effect on inflation with the currently planned schemes, which should actually make gold more attractive. Gold continues to disappoint, but I think we can make a good gold trade in the short term. We are already setting a SL and TP.

Tip: Multiply your usual lot size by ~ 0.6 – 0.8 (60% - 80%) trading Gold (XAU/USD).