Gold Holds Below 61.8% Fib – What To Expect? - Forex News by FX Leaders

Gold Holds Below 61.8% Fib – What To Expect?

Posted Thursday, May 18, 2017 by
Arslan Butt • 1 min read

The gold really has become increasingly precious due to increased uncertainty in the market. Yesterday, the buyers helped the gold trade strongly, particularly, in the New York session. The bullish waves in the gold were in response to the solid sell-off in the U.S. dollar.

However, we remained fortunate as our forex trading signal on the gold did a phenomenal job. In the Asian trading session today, we shared a trading signal to sell the gold below $1260, with an aim of $1255. Thankfully, the trade closed at the take profit level and helped us gain nearly 450 pips.

The market is still having a difficult time accepting the news that U.S. President Trump may have shared intelligence with Russia's foreign minister about an Islamic State operation. Whereas, the recent reports of a leaked memo suggest that Donald Trump had asked that the investigation be stopped.

In response to that, we have experienced a large round of speculation and uncertainty in the global markets. 

Forex Trading Signal

Investors are advised to monitor the crucial trading level of $1262 as I will be looking to sell only below this level with a stop loss above $1264 and a take profit at $1255.

On the flip side, you can take a buying position above $1263 with a take profit of $1267.

Gold - 4 Hour Chart

Gold – 4 Hour Chart 

Technical Trading Levels – Intraday

S1: 1252.64            R1: 1262.04

S2: 1243.23            R2: 1267.85

S3: 1237.42            R3: 1277.2

Traders, the market is highly volatile and this seems to divert its long-term trends. Hence, we need to trade level to level with the stop loss, to avoid sticking in an anti-trend trade.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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