Gold Sinks Below $1,330 as The Market Recovers Risk Appetite!

On Monday, gold prices continue to trade lower on the back of stronger dollar and a weakening demand for haven assets. I just spotted a really cool Gartley pattern which can give us a potential trade today. Are you ready for it?

Top 3 Reasons Behind a Bearish Gold

One of the reasons behind a sharp selling in gold is a stronger dollar. The greenback soared to the 90 level after being restrained in the 89 range in the previous week.

Secondly, the gold fell after yields on 10-year US Treasuries inched up to 2.96%. It’s the highest level since January 2014. In the forex market, investors have many options to invest in and they prefer to keep their investments in the high premium paying securities. That’s why we saw a drop in gold.

Thirdly, the geopolitical developments kept the precious metal supported, but the talks between China and the US eased the markets. Additionally, the North Korea’s leader Kim Jong Un said he might be open to putting nuclear tests on hold. Hence, the demand for safe-haven assets dented.

Gold – XAU/USD Gartley Pattern

On the 4 – hour chart, the gold is facing a solid support above $1,333, the double bottom level. We can see, it’s heavily oversold and should retrace back up to $1,336 (23.6% Fibo level) and $1,340 (38.2% Fibo level). But in case gold violates the $1,333 support, the next target can be $1,324 and that’s where gold completes its bullish Gartley pattern.   

Gold – 240 Min Chart – Gartley Pattern

Gold – XAU/USD – Trading Idea

I will be looking to stay bearish below $1,336 and $1,340 until receives a solid reason for a bullish reversal. Next target is likely to be $1,324. 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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