Mixed Sentiments Are Taking Gold Nowhere!
Since last week, the Gold has been incredibly lazy. As per our previous update, the Gold is still trading in the same range of $1243 – $1260. Yesterday, the U.K formally triggered Article 50 to initiate the process of leaving the European Union. Yet, even Article 50 failed to boost the demand for Gold.
One of the reasons for this is the uncertainty Article 50 creates. Because of the uncertainty, investors moved their investments from the Sterling to the U.S dollar, which resulted in a stronger dollar. The strong negative correlation between Gold and the U.S dollar is causing pressure on the demand for the haven asset.
For now, I recommend that investors follow the big macroeconomic events from the United States. That includes GDP (gross domestic product) and jobless claims, which are due in the early New York session, at 13:30 GMT.
Trading Idea: Considering the market situation, I would not recommend entering the market until it breaks out of the narrow trading range of $1248 – $1260. Though, we can enjoy scalping in this range. Let's wait for the U.S session as we may have some clear trends after the release of U.S economics.
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