Sideways Gold Awaits Breakout – Safe Haven Demand In Play
Arslan Butt • 1 min read
Once again, the yellow metal trades in line with our forecast. In my previous update, Gold’s ABCD Pattern Comes to an End, What’s Next I recommended selling below $1293. What's our next move? Let's find out!
Gold – Key Technical Drivers
Gold is still holding below the sell entry-level of $1293, after forming a tweezer top candlestick pattern in the 4-hour timeframe. Though it's trading above the 50- periods EMA, the bullish momentum isn't that strong. Perhaps, investors are waiting for the fundamental catalysts to devise further trends.
Gold – 61.8% Retracement – Hourly Chart
The gold has entered the oversold territory, which is signaling that bears should wait for a retracement to take another entry in gold. Sellers who are already in the earlier trade are advised to take partial profit and stay in the trade with the positive stop loss at $1292.
Latest Update On the US & North Korea Issue
Safe haven demand rose, underpinning the higher in gold prices, especially after the U.S. and South Korea started computer-simulated military exercises on Monday. This risked a reaction from North Korean leader Kim Jong-un, who could view such exercises as preparation for an invasion of the isolated nation. Read more about it here.
Gold Trading Plan
I'm sticking with the plan and looking to re-enter a sell position below $1293 to target $1280. Buying is encouraged at $1280.