Oct. 9: Bullish Gold – Is It Due To Fundamentals or Technicals?
Arslan Butt • 1 min read
What’s up fellas. Hope you had an amazing weekend and are excited to roll this week. Starting the day with Gold, the trade idea suggested on Oct. 6: A Big Day for Gold Traders – NFP Ahead did a phenomenal job. Are you up for another trade? Let's crack it…
Quick Review of Fundamentals
North Korea is leaving no stone unturned in the threat against the United States. On Friday, the Gold prices bounced from two-month lows over tensions between North Korea and the United States. As per latest news, North Korea is planning to test a long-range missile adding to fears and hiking war sentiment in the area. It's weighing the dollar lower and reinforced safe-haven demand for the precious metals.
In addition, the Gold prices gained another support with China. Chinese markets are back after a week-long break increasing demand hike sentiment from the world's top Gold consumer.
Gold // XAUUSD – Technical View
As we see the fundamental scenario changed on Friday. Well, technicals also gave support to fundamentals. Looking at the daily chart, Gold has completed 61.8% Fibonacci retracement at $1,260.
Gold – Daily Chart – Fibonacci Trading
The 50- periods EMA is providing resistance to Gold at $1,289 and that's exactly the level where Gold previously formed a double top. So, it seems to be a good level to short Gold today.
Gold // XAUUSD – Trading Plan
Today, I'm looking at $1,289 to enter a short position with a stop loss above $1,292 and a take profit of $1,280 and $1,278. On the other hand, it will be nice to take a buying position above $1,271. I know, the prices are bit far from suggested levels. But patience is a key to success in Forex world. Good luck.