Fed rate decision ahead: Will Gold pump or dump?

Middle East tensions boost safe haven appeal for Gold.
Gold Jumps to $2425 ahead of Fed rate decision and US key economic data.
Markets cautious of further bullish spike.

Sunil Kumar Dixit SK Charting

Gold is often perceived to be preferred store of value and in times of escalations in geo-political crisis, demand for safe haven triggers rush to safety which supports Gold prices.

Recent crisis in Israel vs Lebanon has unleashed sharp upswing in Gold prices pushing the metal to $2425 and at striking distance from previous week high of $2433.

Upcoming high-voltage economic events will create high volatility which may witness wild swings in Gold prices.

While immediate trend has turned bullish, some retracement and pullback towards initial support area $2410 followed by $2405-$2401 would work as point of interest and $2389 is seen as next local demand zone which is a potential level of momentum accumulation for resumption of bullish uptrend.

If buyers show strong presence above $2425 and further $2433 is breached, next leg higher may come at $2455-$2468 before retesting swing high $2483.

On the flip side, failure to breach above $2433 will attract bears ready to hunt the rise and reposition their shorts at better risk reward looking to target $2370 followed by $2353-$2333.

Author

Sunil Kumar Dixit

SK Charting

Sunil Kumar Dixit is Chief Technical Strategist and founder of SK Charting, a research firm based in India. He tracks Precious Metals, Energy, Indices and Currency Pairs. He also participates as an expert panellist on Channel Television, Nigeria.

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