Gold Gains Support as US-China Trade War Tensions Escalate
Arslan Butt • 1 min read
The precious metal inches up due to lingering US-China trade tensions. The buying pressure was led by weakness in the global stock markets that could feel the brunt of the recent tariffs imposed by China on the U.S. goods. Here’s a quick trade setup…
Gold – XAU/USD – Key Technical Points
1) Gold is consolidating near $1,280 after coming out of the narrow trading range of $1,294 – $1,306.
2) Although the fundamentals are supporting bullishness in gold, it has an immediate resistance near $1,283. In order to see further buying, gold needs to violate this ($1,283) resistance level.
3) Applying the Fibonacci retracement indicator on the 4 – hour chart, we can see gold has already completed 23.6% retracement at $1,283. The violation of this level is likely to lead gold to 38.2% retracement level at $1,288.
4) The leading indicators RSI and Stochastics are still in the oversold, which means sooner or later we can have a buying opportunity, perhaps, on the bullish breakout.
Gold – XAU/USD – Trade Plan
I’m keeping a close eye on $1,283 to stay bullish above it until $1,288 and bearish below it until $1,277. Good luck!