Top 3 Reasons for Bullish Gold – Can We Expect $1,364?

Gold prices are touching a five-week high near $1,353 as the escalating fears of a trade war between the US and China are hiking...


Gold prices are touching a five-week high near $1,353 as the escalating fears of a trade war between the US and China are hiking the level of uncertainty in the market. As we know, where there is uncertainty, there is Gold. So, can we expect $1,364 today? Let’s find out…

Gold – XAU/USD – Safe Haven Appeal

Traders, the only reason behind a bullish Gold is the safe-haven appeal. I see three reasons for this bullishness:

1 –  Despite the interest rate hike from Fed, the Dollar is getting weaker. It’s mainly because the 1.75% rate was widely expected and already priced in.

The FOMC dot plot failed to surprise the market with 4 rate hikes in the 2018.

2 – Secondly, the escalating fears of a trade war between the US and China have seen investors rushing to gold. Most of the US businesses who were importing goods from China are likely to suffer significantly. The trade war is causing a threat of a slowdown in business activity, profits, and sales.

Ultimately, the dollar is likely to suffer over this.

3 – Lastly, the nomination of John Bolton as US President Donald Trump’s new national security adviser, who is deemed a foreign policy “hawk”, could heighten geopolitical tensions, adding to the uncertainties for investors.

Gold - 4 - Hour Chart

Gold – 4 – Hour Chart

Technically, Gold is facing solid support near $1,351. The RSI and Stochastics are coming out of the oversold zone. This signifies a bullish bias with investors. However, the yellow metal is likely to face an immediate resistance at $1,355 and a break above this can open further room for buying until $1,360.

GOLD – XAU/USD – Trading Idea

The idea is to stay bullish above $1,351 with a stop above $1,347 and to take profits near $1,357 and $1,364. Good luck!

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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