Gold On Fire – Bearish Seems To Dominate The Market
Arslan Butt • 1 min read
Yesterday, during the US session, we saw some serious volatility in the market. Most of this came in response to the dovish remarks from the Steven Mnuchin (United States Secretary of the Treasury). Moreover, the upcoming monetary policy from the ECB is also one of the market movers.
GOLD / XAUUSD – Bearish Engulfing Pattern
In our previous update, we mentioned the bullish breakout which was supposed to drive Gold to $1,359. Nevertheless, the fundamentals fuel the haven demand especially when the US Treasury secretary Steven Mnuchin weakened the Greenback by welcoming a weaker currency.
Gold – 2 – Hour Chart
Technically, the Gold was facing a solid resistance below $1,367, and it has formed a bearish engulfing candle which signals a potential bearish reversal in the metal.
Fellow, we can expect dual side movements ahead of ECB decision today. The dovish ECB is likely to drive Gold bearish.
Gold // XAUUSD – Trading Plan
The idea is to stay bullish above $1,353 with a stop below $1,350/49 and take profit of $1,362 before ECB rate decision today. Good luck and stay tuned for trading signals.