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
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!