Gold On Fire - China Boost Safe Haven Appeal By 25% Tariff - Forex News by FX Leaders

Gold On Fire – China Boost Safe Haven Appeal By 25% Tariff

Posted Wednesday, April 4, 2018 by
Arslan Butt • 1 min read

Chinese finance ministry confirms 25% tariff on the US goods, which triggered the safe haven appeal in the market. US indices are down by 1.39% while the bullion market is skyrocketing with 0.70% gain. I just spotted a butterfly pattern which is likely to give us a really nice position…

Gold – XAU/USD – Key Technical Points

On the 4-hour chart, Gold has formed a butterfly pattern which is really making Gold fly towards $1,356. You can see on the chart below, the pattern has completed A to B movement near $1,320 and now B to C movement is on the cards.

Gold - 240 Min Chart

Gold – 240 Min Chart

The C point stays near $1,356 and as soon as the market completes B to C wave, the Gold is expected to take a big dip to $1,300 and even below. However, you should keep in mind the US NFP which is due on Friday and will be a key player.

Gold – Trading Idea

The idea is to stay bullish above $1335 with a stop below $1330 and a take profit at $1,344. The break above $1,344 is likely to give us further buying until $1,352. Brace yourself for the action.  

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
Related Articles

Leave a Reply

Notify of