Risk Appetite Dampens – Is It Good Time to Sell Gold?

What’s up, traders.

Early this morning, the gold prices edged down as the dollar rose and demand for safe-haven assets eased after U.S. Treasury Secretary Steven Mnuchin announced the U.S. trade war with China remained “on hold”. As a result, investors are moving back to risky investments, causing a sell-off in gold. Here’s gold’s trading signal…

Gold – XAU/USD – Breakout of Sideways Channel

If you recall our earlier update, Choppy Trading In Gold – Brace yourself for a Breakout, the market exactly moved as per our forecast. Gold was stuck in the sideways channel which supported near $1,287 along with a resistance near $1,294. Finally, gold has come out of the sideways pattern in response to a stronger dollar and easing remarks from the U.S. over trade war sentiments. The absence of trade tariffs and friendly tone between the two countries is impacting the gold price more adversely.

Gold – 2 Hour Chart

For now, gold is testing support resistance level of $1,285 on the 2-hour chart. Perhaps, it’s just a retracement because of earlier sell-off. Technically, I’m expecting another round of selling below $1,285 and $1,287. The leading indicators are below 50 and signaling that sellers are looming around the corner.

Gold – XAU/USD – Trading Idea

Considering all the scenario, I will be looking to open a sell position above $1,287 with a stop below $1,291 and take profit near $1,277. 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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