In the short-run, things can get worse for gold . The U.S. FED is due out with their policy statements and interest rate decision during tomorrow’s session. While chances are slim that a rate hike will take place, the markets will be watching the commentary of FED Chair Jerome Powell very closely.
If we do see heightened facing August gold , a short-term buy from just above 1200.0 is a positive way to play the action. Here is the trade:
1)Entry: Buy from 1201.1
2)Stop Loss: 1199.9
3)Profit Target: 1202.3
4) Risk vs Reward Ratio: 1/1