Gold XAUUSD Showing Bullish Divergence Ahead Of FOMC Meeting

Gold and US Dollar have an inverse correlation. When US Dollar gets strong, gold loses ground. This is precisely what has happened. Gold fell on Wednesday, extending the previous session’s slide, as the dollar strengthened ahead of minutes from the Federal Reserve’s latest policy meeting, which will be scrutinised for clues on the U.S. rate outlook.

XAUUSD H1 Chart

Do you see something special in the above screenshots. Two divergence signals have been marked with a gold line. The first bearish divergence signal appeared 2 days back and gold price started to fall. Now there is another divergence signal. This time it is a bullish divergence signal. This bullish divergence signal is just a few hours before the FOMC Meeting Minutes release. So expect gold prices to surge up again and regain the ground that it has lost in the last few days.

Gold trading can be very lucrative if you find spot these divergence signals on the H1 chart. H1 chart is the chart that is best suited for intraday trading. It caters to the news releases very well. Now analysts are saying that $1200 price appears to be hard for gold to overcome. You should have a very good idea of where support and resistance lies when trading gold and you are all set to make very good pips trading gold.

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