The yellow metal gold has hiked to a 7-week high due to the fundamentals discussed in our previous update, Bullish Channel, Global Uncertainties & Gold – Get Ready To Trade. There are several fundamentals that are underpinning the demand for the gold.

Yesterday, gold prices edged higher after the remarks from Chinese officials that there is a scope for additional buying of U.S Treasuries as the Chinese Yuan has now stabilized. The investors jumped in the U.S. Treasuries and placed downward pressure on their yields. In response to this, we have encountered solid investments in the gold due to its positive correlation with the U.S. Treasuries. Both are considered safe investments and attract investors during times of trouble.

In addition to this, we can't ignore the Political uncertainty coming from the UK Snap Elections, as well as the ECB monetary policy meeting. These are both also contributing to the bullish gold.

Forex Trading Signal – Idea

We just closed our previous gold position in order to take profit at $1291. However, I will be looking for another entry exactly below $1294 with the same target of $1286 and a stop loss of $1298.

4-Hour Chart Gold – Double Top Pattern

Technical Outlook- Intraday

Traders, we closed our earlier position in the gold due to the lack of volatility in the market. This has caused the gold prices to get stuck in a trading range of $1290.50 – $1294.

We can enjoy the choppy trading by selling several times below $1294, keeping in mind that our stop loss needs to be very tight.

On the hourly chart, the precious metal gold has tested $1294 twice and there is a high probability of selling below this double top pattern. We need to consider the fact that the market can become highly volatile in an unpredictable manner tomorrow and our objective is to secure you against these shocks.