Gold Gains Support as US-China Trade War Tensions Escalate

The precious metal gold inches up by lingering U.S. - China trade tensions. The buying pressure was led by weakness in the global stock...

U.S. - China Trade War

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.

 

Gold - 4 Hour Chart

 

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!

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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