July 31st – Weekly & Daily Outlook Of Gold
Arslan Butt • 2 min read
During the previous week, the precious metal gold has soared to place multi week highs at $1271 over the weaker dollar and the ongoing tensions between North Korea & the United States. Since the gold is considered a safe haven asset, so the investors count on it to secure themselves against the uncertainty.
This week, the gold is heavily depending upon the top tier economic figures from the United States. Yes, I'm talking about the U.S NFP & unemployment rate. Ahead of releases, the yellow metal is likely to trade technicals, so let's take a look.
Weekly Outlook – Gold
Looking at the weekly chart, the gold has formed a symmetrical triangle pattern which is extending a resistance at $1279. Let me highlight, the gold is very near to the upper edge of the triangle pattern which can either give it an upward breakout toward $1296 or push it deeper towards $1228. All depends upon the U.S fundamentals later this week.
Gold – Weekly Chart – Symmetric Triangle Pattern
Intraday Outlook – Gold
Zooming out to the 4 hours chart, the gold has formed a bullish channel which is proving it a resistance at $1271. The resistance is also confirmed by a bearish engulfing candlestick pattern followed by a Doji, which is formed right below $1271. Bearish engulfing is a reversal pattern that signifies a selling bias of traders. Anyhow, you can refer to FX Leaders candlesticks trading strategy to enhance your understanding.
Gold – 4 Hours Chart – Bearish Engulfing & Horizontal Resistance?
Gold Trading Plan
Today, the idea is to stay bullish above $1262 with an intent to target $1272. On the other hand, we can stay in sell below $1271 with a stop above $1274 to target $1264. We also need to monitor the Pending Home Sales and Chicago PMI later today to determine further trends in the Gold.