Gold Stuck In a Range, Traders Awaiting Breakout
Arslan Butt • 1 min read
Yesterday, the Gold soared to a six month high of $1260, but since then it's been trading below that level. It has stuck in a narrow trading range of $1251 – $1260. Although, the gold failed to break above a strong resistance/upper range, it is supported due to the safe haven appeal and defensive U.S dollar.
In the early New York trading session, the U.S conference board released the consumer confidence index which demonstrated a sharp increase from 116.1 to 125.6 in the month of March. It means U.S households are confident about the U.S's economic standing. Honestly the figure is quite surprising, nevertheless it seems investors are playing defensive as we have not seen any major change in the dollar.
Gold 4- Hour Chart
Technically, in the 4-hour chart, the gold is trading bullish above 50 periods EMA, along with the RSI (at 62) which is also supporting the bullish bias for the yellow metal. But, let me draw your attention to the daily timeframe. Here we can see a key resistance as a result of a double top pattern at $1260.
This is why, we haven't suggested any trade in Gold yet, although the WTI Crude Oil Signal went really well. I recommend to keep following us as we may share a Gold Signal very soon!