Gold Shine Begin to Haze – What’s Next On It?
Arslan Butt • 1 min read
What's up, traders. Our long-term forex trading signal on Gold is doing really well as it's quite near to the target level of $1,273. But what's more exciting is the dollar's fundamentals which are in our favor. Here's what I'm looking to trade today…
What's the Major Reason Behind Bearish Gold?
Most of the bearish trend is fuel by the sharp bullishness in the U.S. dollar. As we know, there is a strong negative correlation between Gold and the Buck. The increased value of the U.S. dollar makes the precious metal costly for traders. In response, not only the intra-day traders but the physical market traders also reduce their demands for the Gold. As we know the Law of Demand, the lower demands lead to lower prices.
Technical Outlook – Gold // XAUUSD
Technically the Gold is following a strong bearish trend especially after the breakage of $1,291 (the support level discussed in our earlier update).
Gold – 4 – Hour Chart – Trendline Support
For now, the Gold is heavily oversold and needs to retrace back up until $1,287 and $1,290. But the fundamentals are strongly weighing the Gold prices. The immediate support prevails at $1,279 which is provided by a blue bullish trend line.
Gold // XAUUSD – Trading Idea
Once again, the market is heavily depending upon fundamentals which are due during the U.S. session. However, the idea is to stay bearish below $1,287 to target $1,279. Good luck fellas and keep following FX Leaders Money Management strategies to enhance profitability.