Gold Plunges as US & Chinese Investors Enjoy Holiday
Chinese investors are enjoying the spring festival, buying in Gold remains low. Technically, the Gold has broken below the major support...
Thanks to the Gold and Dax for giving us a phenomenal start to the week. Our forex trading signal on EUR/JPY is also doing well – it’s just inches away from hitting take profit.
In the meantime, I’m looking at the Gold for another entry, but feeling a bit hesitant as the US banks will remain closed in observance of Presidents’ Day.
Do bank holidays make a difference?
Since the banks facilitate the majority of foreign exchange volume, their closure makes the markets less liquid and speculators become a more dominant market influence. This can lead to both abnormally low and abnormally high volatility.
Gold/ XAUUSD – Technical Outlook
As we know, because Chinese investors are enjoying the spring festival, buying in Gold remains low. Technically, the Gold has broken below the major support zone of $1,350 and now the same level is likely to work as a resistance.
Gold – 2 – Hour Chart
Moreover, the Gold price is still holding below the 50- periods EMA, which means investor sentiment remains bearish.
Gold / XAUUSD – Trade Idea
I will be looking to stay bearish below $1,350 with a stop above $1,353 and take profit at $1,346 and $1,343. Good luck!
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