Gold On Fire – Bearish Seems To Dominate The Market

Yesterday, during the US session, we saw some serious volatility in the market...


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

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.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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