Trump Back In Action – Gold Sideways Channel Breakout
Arslan Butt • 1 min read
The global financial markets are trading calmly as investors await the high impact economic events from the United States. That’s why Gold isn’t going anywhere despite the breakout of sideways channel. We are still in the game. Check out the trade plan.
The bullion market is bullish and the demand for safe-haven assets got a boost, especially after the unexpected firing of U.S. Secretary of State Rex Tillerson.
Besides for this, the yellow metal Gold is being supported as President Trump declared plans to impose taxes on up to $60 billion worth of Chinese imports, specifically targeting the technology and telecommunications sectors. Is this the beginning of a trade war? Investors are wondering. The uncertainty is weighing on the US dollar and keeping the Gold bullish.
On the 4-hour chart below, Gold has come out of the sideways channel that was extending a solid resistance at $1,324 along with a support at $1,315. $1,324 is now working as a support zone.
Gold – 4-Hour Chart
The 50 periods EMA is likely to support the metal near $1,323, a favorite level for today.
Gold – XAU/USD – Trading Idea
I will be looking to stay bullish above $1,323 with a stop below $1,320 and take profit at $1,328.