Gold Looking to Take Grounds Near $1,291 Before G7 Meeting Today

The precious metal gold held mostly steady as investors remained cautious ahead of a G7 meeting beginning later in the day.  Gold is likely to continue trading sideways due to key events next week such as the U.S. monetary policy meeting and a U.S.-North Korea summit. During the Asian session, we opened a forex trading signal on gold. Here’s an update on it…

Gold – XAU/USD – Quick Technical View

Earlier this morning, we entered a forex trading signal to stay in sell below $1,296 to capture quick take profit at $1,293. There are multiple reasons behind it.

Firstly, the 9, 50 and 100 periods moving averages are suggesting a bearish in gold and are likely to provide a resistance near $1,296.

Secondly, the RSI and Stochastics have a bearish crossover on the 4-hour chart. The recent value of RSI is 28 which is signaling bearish bias of traders.

Thirdly, the bearish price action shows a breakout of $1,296 support. The next support prevails at $1,290/89.

Gold – 4 Hour Chart

Lastly, do check our June 8 – Economic Events Report for a quick update on the G7 meeting today.

Support     Resistance

1299.44    1305.7

1297.5    1307.64

1294.37    1310.77

Key Trading Level:    1302.57

Gold – XAU/USD – Trade Idea

We are in sell below $1,296 with a stop above $1,299 and a take profit of $1,293. I will be looking to buy above $1,290 later today. Good luck!