The Gold Gains Support – A Strong Trade Setup Ahead!
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
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