FED HAWKISHNESS VS TECHNICAL FAIR VALUE GAPS – BIG MOVE COMING?GOLD PLAN 21/05 – FOMC HAWKISHNESS VS TECHNICAL FAIR VALUE GAPS – BIG MOVE COMING?
The recent surge in gold has paused just as traders digest the latest Federal Reserve signals. Despite rising geopolitical risks and weakening U.S. economic data, Fed officials continue to project a “higher-for-longer” rate stance, keeping the dollar afloat and adding pressure on gold’s rally.
📉 However, the technical structure tells another side of the story.
⚙️ TECHNICAL OUTLOOK: Bearish Trap or Hidden Bullish Opportunity?
On the 1H timeframe, XAU/USD is showing signs of consolidation after tapping into a major Fair Value Gap (FVG) around the 3328–3356 area. We now observe two key FVG zones above and below current price, highlighting high volatility and potential liquidity grabs.
🔍 A short-term bullish scenario is forming if gold retraces towards 3250–3252 support, where trendline confluence and dynamic support suggest strong demand.
Conversely, any strong rejection from 3354–3356 SELL ZONE could activate a bearish play back towards the lower structure levels.
💹 TRADE SETUPS FOR TODAY:
🔵 BUY ZONE:
Entry: 3252–3250
Stop Loss: 3246
Take Profit Targets:
3256 – 3260 – 3264 – 3268 – 3272 – 3280 – 3300 – ???
🔵 BUY SCALP:
Entry: 3277–3275
Stop Loss: 3272
Take Profit Targets:
3280 – 3284 – 3288 – 3292 – 3296 – 3300
🔻 SELL ZONE:
Entry: 3354–3356
Stop Loss: 3360
Take Profit Targets:
3350 – 3346 – 3342 – 3338 – 3334 – 3330 – 3320
🔻 SELL SCALP:
Entry: 3328–3330
Stop Loss: 3334
Take Profit Targets:
3324 – 3320 – 3316 – 3310 – 3305 – 3300
🌍 MACRO INSIGHT:
Fed’s hawkish tone is weighing on precious metals, but gold remains attractive under geopolitical uncertainty and de-dollarization trends.
China and other central banks continue their accumulation, suggesting long-term bullish pressure is intact.
Watch for U.S. data this week – especially PMI and jobless claims – which could provide short-term catalysts.
📌 Stay cautious and disciplined. Stick to your zones and manage risk tightly – volatility is increasing.
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