During the Asian session, the North Korea & the United States made a huge mess in the global financial markets, causing bullish moves in the gold. Don't worry though, we have a plan to trade the gold.
During times of uncertainty, most investors consider moving their investments to gold as it is a safe haven asset. That's what everyone did during the Sydney session today. This move was in response to the Korean People’s Army spokesman declaring that North Korea was “carefully examining” plans for a missile attack on U.S. Pacific territory, which has a big U.S. military base.
Gold – Hourly Chart – Bullish Channel Resistance
Gold – Hourly Chart – Bullish Channel Resistance
Remember that bullish channel breakout that we spotted a couple of days back? The same trend line breakout is likely to give us a resistance level of $1269. The immediate support prevails at $1264, but $1258 is the ultimate bullish level.
Gold Trading Plan
Despite all the uncertainties in the market, I'm not looking for a buy entry in gold because I think gold has already priced in the news. Instead, I will wait for the market to reach $1269 to enter a sell position with a stop loss above $1274 and take profit at $1259.
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