The Gold Gains Support – A Strong Trade Setup Ahead! - Forex News by FX Leaders

The Gold Gains Support – A Strong Trade Setup Ahead!

Posted Wednesday, May 31, 2017 by
Arslan Butt • 2 min read

The global financial markets are yet cautious on the political outlook in the Europe and economic growth of the United States. Thus, the confused investors piled into the haven securities, such as Japanese Yen, Swiss Franc and Gold. Whereas, the world stock prices dipped in response.  

 

Even though the precious metal failed to maintain bullish momentum, but there was a fundamental reason behind it. The U.S dollar gained support as a result of the U.S. consumer spending, which reported its biggest gain in 4- months. The data pointed the improvement in the domestic demand. As we know, increased demand triggers the prices and lead towards Inflation.

 

Having said that, the Federal Reserve got another reason to think hawkish and to raise Fed fund rates in the coming month.

 

Forex Trading Signal

At the moment, we already have a buy position which was recommended in Ascending Triangle Pattern & Gold – Ready To Buy? But the market reversed in the New York sessions on the release of better than expected U.S economic events.

 

Anyways, $1259 is a hope for the day. I'm plan is to stay on the buying side only above this level with a take profit of $1264/66. Else, I will try to catch selling wave below $1259.

Multiple Trend-lines Support  - Gold Hourly Chart Multiple Trend-lines Support  – Gold Hourly Chart 

 

Technical Outlook – Intraday

At the present time, the yellow metal is consolidating above a solid resistance become support level of $1259. Apart from this, the descending trendline is also extending a support to gold near $1259, which can be seen in the hourly chart.

 

Prices are likely to resist below 50- periods EMA at $1264, but we definitely will get a chance to come out of our previous trade at the breakeven level.

Daily Support & Resistance Levels 

S1: 1259              R1: 1265

S2: 1252              R2: 1268

S3: 1243              R3: 1273

 
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