Another Bullish Wave In The Gold – Trump On Play
Yesterday, the precious metal Gold consolidated in the narrow trading range of $1231 – $1235, in an ascending triangle pattern. The demand for Gold was due to several reasons which were explained in our previous update, Gold Shines On Haven Demand – How To Trade?
The latest news coming from Donald Trump has added fuel to fire. The yellow metal broke out of its strong trading range upside to test another target level of $1241.
Investors boosted the demand for haven assets after the news that U.S. President Trump may have shared intelligence with Russia's foreign minister about an Islamic State operation. Due to this, the demand for U.S. dollar vanished as investors moved their investments to the bullion markets. In addition, the U.S. building permit figures fell to a 5-month low and the figures revealed a drop of 2.6% this month.
In order to increase the investor's level of understanding about Gold, we have shared an excellent report entitled Gold Signals – A Beginner’s Guide, Part 1. This report will be incredibly helpful in understanding the major factors that influence the Gold Trading.
We have yet to share any trading signals as the market is highly unpredictable at the moment. However, sooner or later, I will open a buying position above $1242 with a stop loss below $1238 and take profit at $1247.
Gold 4-Hour Bullish Chart
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Technical Outlook – Intraday
The yellow metal Gold has already violated yesterday's ascending triangle pattern and now it's holding above the intraday support level of $1243.
At this point, the Gold has formed another ascending triangle pattern in the 30-minute chart, which is providing a major resistance at $1243/44 and upon breakage, we are likely to see Gold at $1248.
Further, the leading and lagging indicators are supporting the bullishness of the metal. The RSI is holding at 75 which is demonstrating that the Gold has entered the overbought zone. Sooner or later, we may encounter a retracement in the metal.
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