What If Gold Breaks Above $1270? – U.S. Political Tensions In Focus

During the previous week, the Fed Governor Brainard remarked that the outlook for the global economy seems brighter now compared to the previous years. He tried to underpin the Buck but failed in his attempt.

Another reason for the bullish metal was the dramatic slump in the WTI Crude Oil prices that amplified the demand for haven assets. As a matter of fact, the sudden drops in the energy prices drag the energy sector shares of the U.S. stock markets. Consequently, investors switch their investments to the bullion market in order to protect themselves against uncertainty. Thus, the gold has traded bullish since last week.

Forex Trading Signal

Investors are recommended to enter a buy position above $1263, having placed a stop loss below $1259 and a take profit above $1270.

Gold - Ascending Triangle Breakout on 4- Hour ChartGold – Ascending Triangle Breakout on 4-Hour Chart

 

Technical Outlook – Intraday

We can see in the 4-hour chart that the yellow metal has broken above the ascending triangle pattern at $1262. At the moment, the same level is working as a support the level for the gold.

In addition, the momentum indicators, RSI and Stochastic are holding in the buying zone. Whereby, the lagging indicator, 50 periods EMA, is also extending support to the bullish gold.  

Today, most of the traders will not be at their desks on account of the public holiday in the U.S. and Eurozone. Therefore, trading opportunities are likely to remain limited.

 
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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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