Will Gold Breakout – 3 Things To Watch Today

The safe haven asset Gold is stuck in the sideways trading range despite the weaker US dollar. Today, in the absence of economic indicators, the bullion market is exposed to the technical moves. You should see 3 things before trading Gold today…

1) Sentiment Analysis – Trade War Fear Prevails

We all know the ongoing tensions between the USA and China are weighing on the US dollar. China slapped back with a 25% tariff on the US goods. Gold soared to a multi-week high. But now, the risk-off sentiment is priced in and investors might be considering to follow the technicals. Concluding sentiment analysis, the market may take a bearish reversal.

2) XAU/USD – Sideways Range

You can see on the below chart, Gold is trading in a narrow range of $1,343 -$1,337. The breakout of this range will determine the next trend of Gold. But considering the recent candle, we open a buying signal in Gold, which now seems invalid due to the 3rd reason explained below.

Gold – 4 Hour Chart

3) Candlestick Pattern – Twizzers Top

By the time of writing this update, the Gold signal was closed out at our stop loss and the reason is the lack of volatility and the candlestick pattern. Investors are still staying out of the market ahead of the most awaited economic event: NFP. While Gold has formed a Tweezers Top pattern on the 4-hour chart. The pattern signifies a potential reversal. If the candlestick analysis is something new to you, I would recommend reading FX Leaders Candlesticks Strategy for better understanding.

Gold – Trading Idea

The idea is to stay bearish below $1,336 to target $1,332. At the moment, Gold is trading at $1336.50 and I will be looking for an hourly close below $1,336 to enter a Sell. 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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