Boosted Haven Appeal - Gold Shines Like Before - Forex News by Strategia Forex

Boosted Haven Appeal – Gold Shines Like Before

Posted Friday, June 23, 2017 by
Arslan Butt • 1 min read

Gold gains for the 3rd consecutive trading day, trading at $1253 due to boosted haven appeal and unfavorable economic events from the United States. Additionally, the gold is also bullish for the technical reasons, we elaborated on in our previous update.

Earlier this week, after having support above the $1,240 level, the precious metal gold prices climbed towards $1,255 per ounce. One of the reasons for this was the boosted demand for haven assets. It started when the Chinese bank regulator caught some major Chinese private firms borrowing and using the money to buy assets overseas.

The country's bank regulator asked the large lenders to check and report the credit risk profiles of various major companies that had borrowed massively in the dollar in order to buy assets abroad. Keep in mind, China has good business relations with India and both of these are major gold importers.

Forex Trading Signal – Idea

We have two trade ideas because the gold prices are in between trading levels.

  • Sell below $1254 with a minor stop loss of $1257 and take profit of $1250.
  • Buy above $1247 with a stop loss below $1245 and take profit of $1252.

Gold - 4 Hours Chart

Gold – 4-Hour Chart 

 

Key Technical Points:

The oversold gold is edging higher to 38.2% Fibonacci retracement level of $1256.

The market has formed a 3 White Soldiers pattern on the daily chart, demonstrating a continuation of solid bullish momentum.

On the hourly chart, 50 periods EMA is extending a strong resistance at $1255. The upside crossover is likely to likely to add further room for buying until $1261 & $1265.

 
Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

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.
Related Articles
Bullard is the most dovish member of the FED. But he mentioned rate hikes today, instead of further cuts.
1 hour ago
Comments

Leave a Reply

avatar
  Subscribe  
Notify of