Gold On Fire – Safe Haven Demand In Action - Forex News by FX Leaders

Gold On Fire – Safe Haven Demand In Action

Posted Tuesday, September 26, 2017 by
Arslan Butt • 1 min read

The yellow metal traded exactly as we forecasted in our earlier update Range Bound Gold – Let's Trade The Boring Monday. Today, the market is likely to stay volatile over the several high-impact economic events. Let's take a look.

Gold – Fundamentals Outlook

The Gold prices surged dramatically as the demand for haven assets boosted after North Korea warned that they have the right to “shoot down U.S. bombers.” The fundamentals caused a bullish breakout in the metal.

Gold – Technical Outlook

Recalling my earlier update, I mentioned about the sideways trading range of $1287 – $1297, it's violated and no more in action.

Gold - 3 Hour Chart - Bullish Breakout Gold – 3 Hour Chart – Bullish Breakout

On the 3-hour chart, the Gold has formed the candlesticks pattern "three white soldiers" which is signaling a bullish bias of traders. Taking a look at the leading indicators, RSI and Stochastics, both are oversold enough to retrace back to 1300/04 before continuing further bullish moves.

Gold – Trading Idea

Today, I'm looking to stay bearish below $1316 with a stop above $1319 and take profit at $1306/1303. Lastly, the market will be impacted by the economic events coming out from the United States during the New York trading session today. Good luck!

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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.
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