100 Pips Closed In Gold – What’s Next?

In yesterday's update, Gold On Fire – Risk Off Sentiment Rolling the Market, I shared a forex trading signal selling gold below $1326. The trade went really well and helped us bag nearly 100 pips.  Here's what I'm planning for today…

Quick Update on North Korea

As my colleague, Rowan updated in the morning preview, geopolitical tensions eased after the United Nations condemned North Korea's "outrageous" firing of a ballistic missile over Japan as they demanded to halt its weapons program.

All this became worse on Tuesday morning after the mounting geopolitical tensions over a new North Korean missile launch triggered the demand for safe-haven assets.

Gold's Technical Outlook

The gold has traded exactly as forecasted yesterday. Here are today's key technical points:

– Completed 38.2% retracement at $1306, and it's forming Doji candles above it. This represents investors' neutral sentiment.

Why are investors neutral? Perhaps, due to the top-tier fundamentals coming out in the U.S. session today. ADP non-farm and U.S. GDP figures are at the top of that list.

Gold – 2-Hour Chart – Fibonacci Retracement 

– Stochastic RSI is in oversold territory, which is another reason for not entering into sell now.

– Today, we need to monitor $1306, as breakage below this level is likely to push gold deeper towards $1295.

Gold Trading Plan

Since the metal is massively oversold in the 4-hour chart, my plan is to try a buy position at $1306 with a stop below $1303 and a target of $1313. Traders, keep in mind that the US session may provide us with some unpredictable movements upon the release of fundamentals. Make sure to follow strict money management to stay safe.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

Related Articles

AngloGold Ashanti Golden Q1: Profit, Gold Output, ANG Share Price All Soar

1 day ago

Save

Ethereum Price Prediction Soars—$265M Liquidated, ETH Hits $2,331

2 days ago

Save

Forex Signals Brief April 9: Can S&P 500 Make the Break Today and Close A great Week?

2 days ago

Save

Comments

0 0 votes

Article Rating

Subscribe

Login

Notify of

new follow-up commentsnew replies to my comments

Please login to comment

0 Comments

Oldest

Newest Most Voted

Inline Feedbacks

View all comments