Gold Strives to Stay Above $1,300 while Risk Appetite Heightens

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...

Gold Trades Sideways Ahead of NFP

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

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.

Support     Resistance

1297.19    1303.61

1295.21    1305.59

1292    1308.8

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.  

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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