Gold Plunges as US & Chinese Investors Enjoy Holiday
Arslan Butt • 1 min read
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!