Yesterday, risk-off sentiment faded as anxieties over a global trade war were eased by optimistic news that the US and China are set to commence trade negotiations after previously exchanging threats. Gold is on hold today as most traders will be saving their shots ahead of the GDP data. Let us discuss the trading plan…

Diminishing Safe Haven Appeal

Gold is trading sideways after falling in the US session as concerns about a potential trade war between the United States and China eased. This resulted in reduced demand for the safe-haven asset. Investors jumped to buy the oversold dollar and started taking profits in Gold.

Technical Outlook

At the moment, Gold is trading near $1,343 below a major resistance level of $1,346. Looking at the daily chart, we can see a bearish engulfing candle which signifies a strong selling intention of investors. Newbies, have a look at FX Leaders Candlesticks Strategy for a better understanding of these patterns.

Gold – Daily Chart

Support     Resistance

1340.56     1353.7

1336.5       1357.76

1329.93     1364.33

Key Trading Level:    1347.13

GOLD – XAU/USD – Trading Idea

Traders, we shared a forex trading signal to sell Gold below $1,345 with targets of $1,342 and $1,338. Later, I will be looking to take a buy position near $1,335. Good luck!