Risk-off Sentiment – Gold Heading North!
Gold was one of the losers yesterday due to a stronger dollar and bullish equities. It seems like the scenario is reversed due to risk-off sentiment in the market. What caused risk-off sentiment? Read below …
Gold Ticked Up – Safe Haven Appeal
Yonhap News Agency published that US bombers planes flew over the Korean peninsula as part of annual military exercises that provoked Pyongyang. The drill, conducted throughout the week, boosted haven appeal. Especially when investors realized that this came a week after North Korea launched a test missile called ICBM.
Technically Oversold Metal
The second reason for a pullback was technical analysts. Gold has solid support at $1,260. Of course, it’s a double bottom level.
On the daily chart, Gold has formed a descending triangle, which is supposed to push Gold deeper on the breakage of $1,260. But it’s possible with stronger fundamentals from the US.
The closing of a daily candle (Dec. 5) represented that few of the bears left the market before the day ended. It should be because of uncertainty and safe-haven appeal.
Gold // XAUUSD – Trading Idea
I’m looking to stay bullish above $1,265 with stop $1,263 and take profit at $1,272 and $1,274. Good luck!
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