Gold Trades In Bearish Channel – An Update on Sell Signal

The demand for safe-haven asset dampened after an ease in trade war fears between the U.S. and China. During the Asian session, gold...

Gold - Three Inside Down

The demand for safe-haven asset dampened after an ease in trade war fears between the U.S. and China. During the Asian session, gold prices remain steady, after posting a fresh yearly low in the previous session. Looks like the market is taking a breather from its recent rally in absence of market-moving economic events.

 

Gold – XAU/USD – Three Inside Down

Technically speaking, gold is still on a strong bearish trend. Zooming out the 4-hour chart, gold is trading below 50-periods EMA which is likely to become a hurdle somewhere around $1,297.

The RSI above 80 is signaling the overbought scenario and we can see a ”three inside downcandlestick pattern which is supporting the bearish bias of investors.

 

 

Crude Oil - 4 Hour Chart

At the moment, gold is testing a solid support level of $1,288 on the 2-hour chart and the violation of this can bring more sellers in the bullion market. Gold can gain support above $1,284 along with a resistance at $1,294. We may see a tug of war between bulls and bears in this range.

 

Gold – XAU/USD – Trading Idea

We just shared a forex trading signal to short gold below $1,290 with a stop above $1,292 and a take profit of $1,285. 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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