Gold Strives to Stay Above $1,300 while Risk Appetite Heightens
Arslan Butt • 1 min read
Gold is still trading sideways in the narrow trading range of $1,295 – $1,305 due to the recent vulnerability in the U.S. dollar. Since the unexpected drop in ADP and GDP from the United States, investors are worried about the nonfarm payroll tomorrow. Don’t forget, FOMC is due on June 13 and the series of bad fundamentals can dent the interest rate hike sentiment. Besides this, the political turmoil in Italy and the China-U.S. trade conflict are also fueling safe-haven demand.
I was looking to trade the breakout of $1,295 – $1,305 but the range remained intact. But I think we can still bag a pretty decent return-on-risk with this one. You can see gold has violated the asymmetric triangle pattern on the upper side. But it’s still below a horizontal trendline resistance level of $1,306. I’m looking to seize quick 30/35 pips on an asymmetric triangle breakout.
Gold – 2 Hour Chart
Speaking about economic events, the U.S. isn’t releasing any high impact event today which can limit the trading volume. Yet, the violation of $1,306 can lead gold towards $1,311 and $1,317. Whereas, failing to break above $1,306 can offer us a selling opportunity until $1,300 and $1,297.
Key Trading Level: 1300.4
Gold – XAU/USD – Trade Idea
In the late Asian hours, we opened a forex trading signal to buy gold above $1,303 to target $1,306 with a stop below $1,300. Keep following FX Leaders for more updates on trading signals.