Chinese New Year Bolstering Gold On Sentiments of Physical Demand
Arslan Butt • 1 min read
What’s up, FX geeks.
The yellow metal Gold trades with bullish sentiment today as investor’s focus remains on both, the technical and fundamentals reasons. Are you looking to make some pips on Gold?
Chinese New Year – Physical Demand Sentiment Dominates
On Feb 16, our Chineses friends will be celebrating the New Year. Being one of the world’s top Gold consumer, the Chinese buyers typically trigger physical demand for Gold near New Year. Therefore, the Gold is likely to stay supported on the back of Chinese physical demand sentiments.
Technical Factors In Play
Secondly, on a daily timeframe, the Gold is supported above $1,307/1300 zone. It can be hard for Gold to break below these levels, particularly when the market is trading in the oversold territory.
Gold – 240 – Min Chart
Whereas, the smaller timeframe is facing a solid resistance at $1,320 today. Below this, Gold can stay bearish until $1,312 and $1,308. The bullish breakout above $1,321 can add more buyers in the market to target $1,328. Good luck today!